Fitch noted a significant increase in portfolio investments since last August, driven by attractive returns, which contributed to the Egyptian Pound's stronger performance against the U.S. Dollar. The agency expects the Pound to maintain this strong performance in 2026.
Despite Fitch's expectation that the Central Bank will
continue to cut interest rates in the coming months, bond yields are projected
to remain attractive to investors.
Fitch forecasts the continued improvement of the external
sector, with the current account deficit shrinking to 3% of GDP in the 2025/2026
fiscal year. This improvement is attributed to rising exports of goods and
services and strong remittances from Egyptian workers abroad.
Foreign currency reserves reached a new record high of $50.1
billion in October 2025. This figure is projected to rise further to $52.6
billion by the end of the 2025/2026 fiscal year.
Fitch also highlighted that the net foreign assets of the Egyptian banking sector reached their highest level in October 2025 since February 2020.