Egyptian Pound Becomes the World’s Best-Performing Currency
Egyptian Pound Becomes the World’s Best-Performing Currency After Oil Price Drop.
The Egyptian pound has become the world’s best-performing currency after a sharp drop in oil prices eased pressure on Egypt’s economy.
Since Friday, the pound has gained around 4% against the US dollar, outperforming all global peers. It strengthened past 50 per dollar for the first time since March 3 on Wednesday and is up more than 7% since early May, also the best currency performance worldwide over that period.
The rally follows a US-Iran agreement to reopen the Strait of Hormuz, sending oil prices down by around 15% over four trading sessions. For Egypt, one of the region’s largest energy importers, cheaper oil is expected to reduce import costs, ease inflationary pressures, and improve investor confidence.
The renewed optimism has also lifted Egypt’s dollar-denominated bonds, while analysts expect lower energy prices to support the country’s ongoing economic reforms and IMF-backed programme.
