Could a possible sell-off by carry traders see the EGP drop in value against the USD?

Could the unwinding of carry trade positions see the EGP drop against the USD? The EGP could slide to something on the order of EGP 20 to the greenback by 2019, Capital Economics’ Jason Tuvey told CNN Arabic in an interview on Thursday. The USD has been holding steady at around EGP 18, largely on the back of short-term foreign inflows, says Tuvey. As the EGP appreciates, a sell-off by the carry trade and other short-term investors will lead to a depreciation in the EGP by 2019, he added. He also points to the drop in Egyptian equities, which fell to five-month low in July, as presaging a coming slide in value of the EGP.