Pound still to get ‘fair value’

The Star Early Edition - - INTERNATIONAL -

THE EGYP­TIAN pound could at­tain its “fair value” in about six months, Pres­i­dent Ab­del Fat­tah el-Sisi said, try­ing to re­as­sure his na­tion that a price surge since the aban­don­ment of cur­rency con­trols was tem­po­rary. El-Sisi said the cur­rency was weaker than it should be, but should strengthen as re­forms took hold. “The current price is not the fair price, but we can, through the mea­sures we’re tak­ing and through the pop­u­la­tion’s co-op­er­a­tion, reach a fair value in six months when the ex­change mar­ket sta­bilises,” he said. If that hap­pened, “it will be re­flected in the price of goods and the pres­sure on the peo­ple will ease”. Core in­fla­tion climbed the fastest in almost 12 years last month, near­ing 26 per­cent. In tan­dem with the free float the gov­ern­ment raised bench­mark in­ter­est rates 300 ba­sis points and in­creased fuel prices. – Bloomberg

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