Cairo – Mubasher: The Brexit decision may leave a negative impact on the Egyptian economy, said the International Monetary Fund in a Wednesday's report.

The Egyptian Exchange has been the most negatively affected market in the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) and Caucasus and Central Asia (CCA) regions, shedding 5% roughly during 23-26 June after the June 2016 UK referendum.

Currencies as well went lower on Brexit.  "Currencies weakened only marginally (by 1½ percent in Algeria, Kazakhstan, and Morocco, and by 5 percent in Georgia) and there was no significant impact on forward currency spreads in the GCC, which peg to the U.S. dollar", said the IMF.

The IMF expecteed the reliance of some banks in Bahrain, Egypt, Qatar, and the United Arab Emirates on wholesale borrowing from the United Kingdom to be an issue in the event of a spike in funding costs.

Moreover, countries with vulnerable fiscal position such as Egypt are likely to tap international markets in the upcoming months to finance their budget deficit, the IMF indicated.