Egypt's economic prospects have deteriorated over the past 18 months, which will have long-lasting consequences for the health of its financial sector. Inflation has climbed to record levels, after the exchange rate depreciated by 50% against the US dollar between March 2022 and early 2023. The Central Bank of Egypt (CBE) has pushed up interest rates to almost 20%. Investors' concerns about the state of the economy have been reflected in a sharp rise in spreads on credit default swaps for Egyptian securities.