Analysis on Changes in Exchange Rate of Egypt over Past Decades

DOI

10.2991/aebmr.k.220307.388How to use a DOI?

Keywords

Exchange rate; Egyptian pound; Economic fundamentals; Egypt; Egyptian pound exchange

Abstract

The exchange rate, the price of domestic currency as compared against foreign currency, may incur fluctuations according to changes in the national macro-economy. This paper analyzes alterations in the exchange rate of the Egyptian pound over the past decade by tracking the impacts of political and military events, economic policy, as well as foreign exchange reserve. In addition, this paper forecasts risks that Egyptian currency may confront. These risks contain the uncertainty caused by COVID-19 on future economic environment in Egypt, high-interest rates and frequent speculation following the implementation of a floating-exchange-rate system. Using the Purchase Power Parity theory and making reference to the predicted inflation rates in United States and Egypt, this paper links the USDEGP currency exchange rate with the prices of identical goods in the two countries and predicts that Egyptian pound will further depreciate in the coming year. People will take £16.24 Egyptian pound to buy $1.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Wenhua Mao
PY  - 2022
DA  - 2022/03/26
TI  - Analysis on Changes in Exchange Rate of Egypt over Past Decades
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 2376
EP  - 2379
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.388
DO  - 10.2991/aebmr.k.220307.388
ID  - Mao2022
ER  -