Egypt’s currency continues to devalue against the US dollar, a trend that is expected to boost export competitiveness and attract foreign investment into the country.

The latest foreign currency auction, held by the central bank on 22 January, saw the Egyptian pound weaken to 7.39 against the dollar, the weakest the currency has been since 2012. An auction on 21 January saw the Egyptian pound fall to 7.34 against the dollar.

The decline in value of the currency could continue, say analysts. “We think the [Egyptian] pound’s depreciation has further to run,” says a research note from UK-based Capital Economics.

Egypt is in the process of improving its business environment to attract investment, taking measures such cutting subsidies and reforming its tax programme.

It is pushing forward with its plans to use public-private partnership (PPP) schemes to finance its infrastructure projects.

The country is preparing to host an economic summit in Sharm el-Sheikh in March, where it will present investment opportunities to the global and regional investor markets.

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