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Here's how the latest US rate hike will impact Egypt's economy

A stronger US dollar will inevitably drive higher import costs, and subsequently prices, in the most populous Arab country, yet could eventually provide a boost to the local currency with an increase in exports.
People walk past a currency exchange shop displaying a giant US dollar banknote in downtown Cairo on Nov. 3, 2016.

Spearheaded by a hawkish Federal Reserve policy, the US dollar is rallying across the board versus world currencies. The greenback has posted gains against major currencies, including the euro, yuan and yen, since the Fed raised interest rates by 0.75% on July 27. The Egyptian pound has been no exception, with the US currency currently hovering above 19.15, the highest since December 2016.

However, the recent gains of the greenback are logical due to the demand/supply equation, as one economist told Al-Monitor.

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