Expect More Rate Cuts From Egypt, Says Exotix’s Malik

The video discusses Egypt's economic strategies, focusing on the Egyptian pound's forward rates, FX market changes, and the country's economic confidence. It highlights the challenges of balancing inflation, interest rates, and exchange rate stability. Egypt's removal of the FX repatriation mechanism indicates confidence in its FX market, while high FX reserves show economic strength. However, domestic investment has been hindered by high rates. The video explores the potential for further interest rate cuts and the need to maintain exchange rate stability amid declining inflation.

What was one of the reasons for Egypt's lack of domestic investment over the past year?

• Low FX reserves

• Strong dollar

• High interest rates

• High inflation rates

Why was Egypt's early and significant interest rate cut considered surprising?

• Because of global economic conditions

• Due to high inflation

• Because it was unexpected so early in the year

• Due to low FX reserves

What is Egypt's inflation target for 2020?

• 10% plus or minus 4%

• 15% plus or minus 2%

• 9% plus or minus 3%

• 13% plus or minus 3%

What challenge does Egypt face in the second half of the year regarding its economic strategy?

• Rising US interest rates

• Decreasing FX reserves

• Maintaining FX rate stability while cutting interest rates

• Increasing inflation

What is the current status of Egypt's FX rate compared to the real effective exchange rate?

• 20% overvalued

• 20% undervalued

• At par with the real effective exchange rate

• 10% undervalued