Banks’ liquidity to improve after limits removal: Fitch

CAIRO – 3 July 2017: Egypt’s removal of limits on foreign currency transfer will attract foreign investments as banking liquidity will improve, international rating agency Fitch Ratings said Monday.

The decision, issued by the Central Bank of Egypt (CBE) on June 14, will help banks provide foreign currency for importers.

“We expect a greater inflow from foreign investors now that the CBE has ended the $100,000 annual cap on the amount that account holders can transfer outside Egypt,” Fitch said in the statement.

Fitch Ratings affirmed Egypt’s long-term foreign and local currency default rating (IDRs) on June 22 at “B” with stable outlook.

The rating agency expects inflation to be near 20 percent for the rest of 2017, and to decline to an average of 13.5 percent in 2018.

Fitch forecasts GDP growth to hit 4.5 percent in 2018 due to a stabilizing exchange rate and production from the Zohr gas field.