Egypt’s c.bank chief says S&P upgrade signals confidence in economy, reforms paying off

Central Bank of Egypt (CBE) Governor Hassan Abdalla said Monday that S&P Global Ratings’ decision to upgrade Egypt’s long-term sovereign credit rating reflects growing confidence in the country’s economy, citing the impact of recent monetary and structural reforms.

Abdalla said the move underscores international recognition of Egypt’s reform momentum, particularly the unification of the exchange rate regime, which he described as a “key step towards enhancing market stability.” He added that improvements in external indicators and higher foreign exchange reserves demonstrate the effectiveness of economic policies implemented in recent months.

S&P Global Ratings on Friday raised Egypt’s long-term credit rating to “B” from “B-”, with a stable outlook — the first upgrade in seven years. The agency said the decision was driven by reforms carried out over the past 18 months, including the liberalisation of the foreign exchange regime, which helped spur a sharp rebound in GDP growth in fiscal year 2025.

The ratings agency also pointed to Egypt’s flexible exchange rate, stronger tourism revenues, and higher remittances as key factors supporting growth and stabilising the external position. Net financial inflows have strengthened, the report noted, reflecting improved investor confidence.

Abdalla reaffirmed the central bank’s commitment to maintaining prudent monetary policy aimed at curbing inflation and safeguarding financial stability to sustain economic growth.

In a related development, Fitch Ratings affirmed Egypt’s long-term foreign-currency rating at ‘B’ with a stable outlook, citing resilient growth, a stronger external position, and progress in fiscal reforms despite regional challenges.

Attribution: Amwal Al Ghad English