Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

Analysis on Changes in Exchange Rate of Egypt over Past Decades

Authors
Wenhua Mao
Department of Economics, University of California, San Diego, United States, 92093
Corresponding author. Email:w1mao@ucsd.edu
Corresponding Author
Wenhua Mao
Available Online 26 March 2022.
DOI
10.2991/aebmr.k.220307.388How to use a DOI?
Keywords
Exchange rate; Egyptian pound; Economic fundamentals; Egypt; Egyptian pound exchange
Abstract

The exchange rate, the price of domestic currency as compared against foreign currency, may incur fluctuations according to changes in the national macro-economy. This paper analyzes alterations in the exchange rate of the Egyptian pound over the past decade by tracking the impacts of political and military events, economic policy, as well as foreign exchange reserve. In addition, this paper forecasts risks that Egyptian currency may confront. These risks contain the uncertainty caused by COVID-19 on future economic environment in Egypt, high-interest rates and frequent speculation following the implementation of a floating-exchange-rate system. Using the Purchase Power Parity theory and making reference to the predicted inflation rates in United States and Egypt, this paper links the USDEGP currency exchange rate with the prices of identical goods in the two countries and predicts that Egyptian pound will further depreciate in the coming year. People will take £16.24 Egyptian pound to buy $1.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
10.2991/aebmr.k.220307.388
ISSN
2352-5428
DOI
10.2991/aebmr.k.220307.388How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Wenhua Mao
PY  - 2022
DA  - 2022/03/26
TI  - Analysis on Changes in Exchange Rate of Egypt over Past Decades
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 2376
EP  - 2379
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.388
DO  - 10.2991/aebmr.k.220307.388
ID  - Mao2022
ER  -