Institute of International Finance: Euro and Sterling are still above their fair value


In its latest notes issued on Thursday, the Institute of International Finance stated that losses in both the euro and the British pound are still not enough to bring the two currencies to their fair value, as they need to fall further to reach that level.

The Institute of International Finance estimated that the British pound is still 18% above its fair level, while the Euro is still 11.6% higher, despite the sharp declines in the two currencies this year.

Commenting on the institute’s latest notes on its latest estimates of the fair value of two forex currencies, IIF currency expert Robin Brooks explained that although the euro and sterling have already fallen significantly, the IIF estimates that they still need more work. decline.

It is noteworthy that the euro has witnessed huge losses this year that pushed it below parity against the US dollar, as a result of the strong rise in interest rates by the US Federal Reserve, and the exacerbation of the European energy crisis.

On the other hand, the pound fell this week to its lowest level against the US dollar since the global financial crisis in 2008, after the new government of Liz Truss announced the new energy price support package for British families and tax cut decisions this week, but it witnessed some recovery today after the The Bank of England buys government bonds.

The statements of the Institute of International Finance come at a time when the euro is trading at $0.9784, after it rose during the American session of the forex market by about 0.5%, and at the same time, the British pound is trading at $1.1059, up 1.56%, at exactly 06:10 GMT.


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