CBE Governor Hassan Abdalla said the upgrade was a result of the monetary and structural reforms implemented over the past period.
He stated that the unification of
the exchange rate was a fundamental step towards enhancing market stability.
Abdalla added that improved external sector indicators and rising foreign
exchange reserves reflect the effectiveness of the economic policies that have
been applied.
The CBE governor stressed the
bank's commitment to continue implementing sound monetary policies aimed at
containing inflation and maintaining the stability of the financial system to support
sustainable economic growth and strengthen the confidence of international
institutions and investors.
S&P Global Ratings on Friday
upgraded Egypt's long-term sovereign credit ratings to 'B' from 'B-' with a
stable outlook, the first upgrade in seven years.
The agency noted the upgrade
"reflects the reforms authorities implemented over the past 18 months, including
the liberalisation of the exchange rate regime, which have led to a marked
rebound in GDP growth" during the fiscal year 2025.
S&P also affirmed that
Egypt's transition to a flexible exchange rate regime, along with rising tourism
receipts and increased remittances from Egyptians abroad, contributed to
stronger economic growth. The improvement in net financial flows also bolstered
the economy's external position.
Separately, Fitch Ratings also affirmed Egypt's long-term foreign-currency Issuer Default Rating (IDR) at 'B' with a stable outlook. Fitch cited the country's cohesive economic growth, an improved external position, and continued fiscal reforms despite regional challenges as reasons for the affirmation.