Devaluation is “credit positive” for Egypt, says Moody’s

Add Moody’s to the list of outfits banging the drum for devaluation, with the ratings agancy saying in a note released this past Friday that March’s 14% devaluation of the EGP and the subsequent hiking of interest rates by 150 bps “comes at a time of low net international reserves and is credit positive both for Egypt (B3 stable) and its banks. Bringing the official exchange rate closer to unofficial market rates will make the country's assets more attractive for foreign investors and will improve trade competitiveness.” Tap here to download the full Moody's report.