Meanwhile, the Central Bank of Egypt has revealed that it will adopt a flexible exchange rate system, giving priority to the primary goal of achieving price stability. He explained that the exchange rate of the value of the Egyptian pound against other foreign currencies will change according to the forces of supply and demand. The dollar exchange rate in some banks has jumped to a level close to 22.5 pounds.
The Central Bank of Egypt said it will work to build and develop the financial derivatives market with the aim of deepening the foreign exchange market and increasing foreign liquidity levels.
The Central stressed that the exchange rate will reflect the value of the pound against other currencies through the forces of supply and demand, as part of a flexible exchange system, with priority on the central objective of achieving price stability. . He stressed that reform measures have been taken in the light of the above to ensure macroeconomic stability and achieve sustainable and global economic growth.
The Monetary Policy Committee of the Central Bank of Egypt had decided, in the course of an exceptional meeting, to raise the interest rate by 200 basis points, by 2%. The Central Bank of Egypt clarified that it was decided to increase the deposit and overnight loan rates and the main transaction price by 200 basis points to reach 13.25%, 14.25% and 13.75% respectively. . It was also decided to increase the credit and discount rate by 200 basis points to 13.75%.
In the foreign exchange market, the dollar exchange rate recorded the highest level for 8 banks led by the National Bank of Kuwait, “HSBC”, National Bank of Egypt and Commercial International Egypt, ranging from £ 22.10 to 22.45 pounds.
Meanwhile, the US Green Paper exchange rate at the Central Bank of Egypt stabilized at £ 19.66 for the purchase, compared to £ 19.77 for the sale.
Today, Thursday, data from Refinitiv indicated that the price of the Egyptian pound against the dollar hit an all-time low of 22.5 pounds, after the Central Bank of Egypt decided to raise the interest rate of 200 basis points.
At 08:09 GMT, the dollar price in Egypt registered 22.5 against the pound.
In a related context, economics expert Dr. Hani Genena expected, in an interview with Al-Arabiya today, Thursday, a complete fluctuation in the exchange rate of the Egyptian pound against the dollar, bringing its price to about. 24 or 25 pounds per dollar.
Geneina added that the sudden liberalization of the exchange rate, which should happen within minutes, is always accompanied by an increase in interest rates to prevent dollarization and encourage banks to offer savings instruments, and this coincides with the Bank. national offering a 3-year savings certificate with a rate of return of 17.25%.
Geneina confirmed that she expects a total fluctuation in the exchange rate, noting that the central bank may have agreed with the International Monetary Fund on a limited intervention on the exchange rate using part of the foreign reserves while maintaining a minimum reserve, and the intervention could be approximately $ 1 billion, as there will be fluctuations in the Exchange price during the session.
