EFG-Hermes said, in a report, that it maintained its expectations that the Egyptian pound would continue depreciate against the U.S. dollar, as the country’s economic conditions are improving which will fuel demand for the greenback.

Mohamed Abu Pasha, economic analyst, EFG-Hermes, said the decline in the parallel market over the last three months affirms the forecasts of weakening Egyptian currency over the coming period.

“The EGP may reach 7.38 to the dollar by the end of this year,” said the analyst.

Abu Pasha noted that such estimates depend on the outcome of the economic summit scheduled for the first quarter next year, during which the Egyptian government hopes to lure more foreign direct investments.

Egypt’s central bank announced on Sunday that its foreign currency reserves fell in November to $15.88 billion from nearly $16.90 billion a month earlier.

Photo Credit: Arabianeye-Reuters