CURRENT MACROECONOMIC SITUATION

Devaluation of the Egyptian pound

Devaluation of the Egyptian pound

Financially, the Egyptian stock market was down 21% since early January, due to the loss of 16% of its value in the two days following the start of mass demonstrations in the square Tahrir in Cairo. Foreign funds accounted for 22% of the assets of the Egyptian Stock Exchange which 7% is in the hands of Arab investors. The uncertainty will lead to a substantial redistribution of foreign investment flows from Egypt to other markets.

In addition to its negative effect on the stock market, the massive flow outward ...