The Egyptian Pound (“EGP”) has been suffering against the US Dollar (“USD”) recently. In this regard, it is estimated that the EGP has lost more than 50% of its value against the USD since March 2022. Notably, the EGP has hit various new lows since the decision of the Central Bank of Egypt (“CBE”) to liberate the currency price according to the free market forces.
Unsurprisingly, this local currency depreciation, along with other crises on the international scene, have affected the economic cycle, and the supply chain in Egypt. The questions which impose themselves in this respect are: What are the effects of such depreciation on the contractual arrangements? How is the event of a currency depreciation classified under the Egyptian law? Is there any special treatment applicable on the construction contracts? How can parties to a contract avoid the effects of such on-going uncertainty regarding the EGP’s exchange rate? You will certainly find an answer to the above questions, and more, in this article by Shehata & Partners (“S&P”).
To Download the Full Report
Effects of Currency Depreciation on Contracts Under the Egyptian Law .pdf - Google Drive