Moody's downgraded Egypt's sovereign rating by one notch to B3 from B2, revealing Egypt's declining foreign exchange reserves and ability to absorb external shocks. The agency changed its outlook for Egypt to be stable from negative. “Moody's,” said it did not expect Egypt's liquidity to recover and its external position to improve rapidly.
The Central Bank of Egypt announced in a statement that net foreign reserves rose to $ 34.224 billion in January from $ 34 billion in December 2022.
Egypt is facing a foreign exchange shortage despite allowing the Egyptian pound to fall sharply in recent months. Egypt's headline inflation is expected to accelerate further after jumping to a five-year high in December.
Source (Al-Arabiya.net, Edited)
