Emerging Markets Rates and Currencies Handbook

Egypt (EGP - Egyptian Pound) Citi in Egypt Citibank’s first entry in Egypt was in 1955, opening the first branch of a US bank in the Middle East. Following the nationalization of the late 50’s Citi Egypt exited the Egyptian market in 1963. Citi re-introduced itself in 1975, through its branch in Cairo, with a license to operate in foreign currency. In 1993, Citibank Egypt received its license to operate in local currency, which allowed for the gradual development of a full-fledged Corporate and Investment Banking business that caters to corporate customers and financial institutions, providing the full range of Treasury and Trade Services, Corporate Finance and Markets solutions. Citi divested the Consumer Banking business to a local bank namely; Commercial International Bank in 2015. This step is in line with Citi’s global strategy. Currently, the bank serves multinationals, global investor clients, Government of Egypt, and local/Public Sector clients and fully supports their banking, investment and credit requirements. Market Overview - In March 22’, Egypt undertook exchange rate, monetary and fiscal measures in response to the adverse global developments, aggravated by the conflict in Ukraine. - The conflict pressured the country’s FX reserves, causing large scale portfolio outflows, estimated at around $20Bn. - The Central Bank of Egypt (CBE) allowed the exchange rate to devalue, total devaluation till date is approx. 97% since March 22’. - Egypt received close to $13 bln in financial support from the GCC. - In Dec 22, IMF approved a $3bn loan under a 46-month Extended Fund Facility (EFF) arrangement. - Under the IMF program, the Gov of Egypt committed to implementing key pillars under the Economic Reform Program which involves: Moving into a durable flexible exchange rate regime, fiscal consolidation, sustainable 86