Egypt’s central bank slashed key interest rates by 1.5% on Aug. 22, triggering public concerns about a possible depreciation of the local currency. As locals are seeking a haven from inflationary pressures of the US dollar, real estate, gold and the stock market emerge as plausible answers.
Amr Abol-Enein, managing director of CI Capital Asset Management, dismissed any fears of dollarization, citing Egypt’s improved macroeconomic indicators as the main drivers other than the interest rates.