© Reuters.
Investing.com – The black market price saw a sharp drop of EGP 12, from EGP 38 to EGP 26, a major blow for currency traders, and demonstrates the extent of the state’s successful efforts to eliminate the damaging parallel market the state and citizens and achieve market stability.
The state of confusion and confusion has dominated parallel market traders, which harms national interests, as the dollar’s exchange rate continued its sharp decline after the Central Bank’s decision to raise the interest rate by 300 basis points, or 3%, and conversely, the recent decisions of the Central Bank of Egypt have strengthened support for the performance of the pound on the exchange market against the dollar.
Under my responsibility
A program under my responsibility, broadcast on the Sada Al-Balad channel, said: “There are people who speculated with the dollar on the black market and bought, and then they bought again and bought, and had a heart attack.” .
And the presenter of the program, Ahmed Moussa, continued: “They bought for 35, 36 and 37 pounds, and after that they got a sweet treat, and they had a heart attack after losing more than 10 pounds on every dollar. “
The presenter of the program indicated that black market trading caused heart attacks in traders, who bought the dollar dearly.
sterling after the loan
The price of the dollar stabilized after the International Monetary Fund announced in the early morning hours of last Saturday, December 17, at its Executive Committee meeting, its approval to grant Egypt a $3 billion loan for a period of 46 months.
In contrast to the stability of the genie in the official market, the price of the dollar collapsed in the parallel market as soon as the first tranche of the loan was approved.
Local media said the dollar is now being sold on the black market for less than £28 and up to £26 to the dollar. According to reports, black market traders have stepped up their purchases of dollars, up to the price of 37 pounds, hoping it will sell for £40.
pound now
On Sunday, the Central Bank’s official rate screen revealed the stability of the pound against the dollar, with the offer price registering levels of 24.7653 pounds per dollar, while the bid price registered levels of 24 .6865 pounds to the dollar.
In the national banks, National Bank of Egypt and Banque Misr, the dollar exchange rate stabilized at levels of 24.69 pounds per dollar for sales and 24.64 pounds per dollar for buys.
In private banks, Al-Masry Al-Khaleeji, Abu Dhabi Islamic, Mashreq Bank, Al-Ahly of Kuwait (Piraeus) and Commercial International (CIB), the sale price recorded 24.75 pounds per dollar, while the price of purchase recorded 24.72 pounds to the dollar.
pound on the black market
Reports from local newspapers and the Egyptian media have revealed that the price of the dollar on the black market is subject to violent and continuous falls in the direction of the price parallel to the official market.
In about a week, the dollar’s black market exchange rate fell by more than £12, taking the exchange rate from levels of £38 to the dollar to levels close to £26 to the dollar.
Black market dollar exchange rates were trading levels close to £38 per dollar before the fund’s loan signing, with no actual enforcement, Reuters reported late last week.
While CNB Arabia said the dollar’s black market exchange rate surpassed £33 per dollar levels, in a fierce state of speculation in light of expectations of a third listing of the local currency.
While Al-Arabiya TV said a state of confusion had dominated traders and dollar dealers in Egypt’s parallel foreign exchange market as the dollar’s exchange rate continued to fall to the £29 level, down from £38 on Friday last.
There is no third float
Mostafa Badra, an economist, says Egypt had no alternative to borrowing from the International Monetary Fund and there is no third rate for the pound.
The economist added that prices could fall within a month, under the directives of President Abdel Fattah El-Sisi, who has promised to resolve the crisis within two months. By releasing the goods in the ports.
Dr Mostafa Badra added that the IMF has stressed that there is no third quotation of the Egyptian pound, but that a flexible exchange rate policy must be followed.
The pound is heading towards its fair value
Former central bank governor Hisham Ezz Al-Arab, board member of Commercial International Bank (EGX): said: “Currency is one means of monetary policy, and it is a means and not a goal. He added that the local currency is two pounds cheaper than its value against the dollar.
Hisham Ezz Al-Arab said the black market has been imposing unwarranted numbers as the situation has been exploited, and rumors have been raised to profit from it, such as the two leaks on the Central Bank’s extraordinary meeting last Thursday evening, and before that that the IMF would not accept the program with Egypt.
Ezz Al-Arab revealed that some importers obtained the dollar exchange rate from banks at the official rate and held consumers responsible for the final product at black market exchange rates.
Ezz Al-Arab said the main goal of the government and the central bank is to stabilize prices by targeting inflation, stressing that the current problem is the existence of a funding gap following the outflow of hot money just before the war and global inflation.
important decisions
Misuse of the card is prohibited
The Central Bank of Egypt stressed that banks should inform customers by any means of communication that the misuse of credit cards and direct debit cards is prohibited, especially for customers who do not leave the country.
The bank said in a statement that this is part of reports that there are uses of some credit and direct debit cards in operations outside Egypt, despite the presence of customers with these cards abroad. inside the country.
The Central Bank added: “It is forbidden to request the procurement of currency for travel abroad without leaving the country and banks must examine a sample of the uses of these cards that occurred outside the country, as well as requests for procurement of currency for travel purposes from 1 December 2022.
The Centrale confirmed that in the event that the bank detects that there are increasingly frequent uses which contradict the nature of the customer’s uses and which indicate the suspicion of misuse by the customer of the card or currency which has been procured, especially in case there are indications that the client has not left the country, then the bank must inform the central administration to collect the credit risks of the central bank with complete data on these clients, and any other cases that arise in so on its date.
commission increase
Banque Misr and the National Bank of Egypt have increased the commission rate on dollar cash withdrawals and purchases outside Egypt to 10% instead of 3%.
According to the data, the fee is deducted from the total value of cash withdrawals and purchases outside Egypt using direct debit cards (linked to the customer’s account) and credit cards known as credit cards (purchases).
The measure aims to tighten restrictions on the use of foreign currency outside Egypt, at a time when banks are having difficulty obtaining dollars.
other decisions
- Changing foreign currency cash withdrawal limits on all cards
- – Modify the limits and restrict the use of cards to some purchases from abroad.
- The Central Bank of Egypt has called on banks to verify foreign purchases for customers via their bank cards and to ensure that they have actually left the country during the times of the purchases.
- The Central Bank of Egypt sent a letter to the banks in case the proceeds of the gold export operations were not received within a maximum period of 7 working days from the date of dispatch, and after the bank followed the customer for only in the following 3 working days, must inform the Central Bank.
