©Reuters.
Investing.com – The specter of a parallel foreign exchange market, which Egypt has managed to rein in for some time, appears to have re-emerged amid mixed reports and leaks of fresh claims on the International Monetary Fund.
Although the Central Bank has liberalized exchange rates twice in the current year 2022, the first time in March and the second time last October, according to press reports, a new rate is looming on the horizon.
new cut
According to official foreign exchange market rates, the Egyptian pound fell again against the US dollar during today’s Tuesday trading by 3 piastres.
The price screen of national banks, the National Bank and Banque Misr, revealed an exchange rate hike to £24.59 sell levels, and £24.54 sell levels.
In private banks the dollar rose at the same rate, reaching levels of £24.65 in selling and levels of £24.62 in buying at Abu Dhabi Islamic Bank and Kuwait’s Al Ahli Bank.
And in the Central Bank of Egypt, the exchange rates of the dollar against the pound rose by more than 3 points, reaching levels of 24.6606 pounds dollars in the sale and levels of 24.5805 pounds dollars in the buy.
Black market
Dollar-to-pound exchange rates have surpassed £30 per dollar on the black market as market experts believe rising black-market dollars could lead to a new movement in the banks, until the price of the dollar reaches its true value against the pound.
Earlier, Hani Geneina, a professor at the American University, predicted that the black market in foreign exchange would disappear in the first quarter of next year and that Egypt would receive a small part of the financing agreed with the International Monetary Fund next December .
He pointed out that the black market after the listing decision in 2016 did not disappear until the first quarter of 2017, and therefore there is a great similarity between the two scenarios.
The expert and economic analyst, Hani Genena, predicted that the dollar will see a natural rise in the next period, up to overcome the barrier of 25 pounds, but will fall again with the arrival of the first tranche for the ‘Egypt by the International Monetary Fund.
Requests for funds
After a postponement that raised many questions over the failure to include Egypt on the agenda of International Monetary Market meetings at its first meeting in December, the International Monetary Fund decided today, Tuesday, to include the agreement with Egypt on the agenda of its meetings on 16 December.
Earlier, a government source said, according to state media, that Egypt’s non-inclusion in the meeting agenda is normal and not a cause for concern, as it could be added to the IMF’s agenda later this month.
Egypt was expected to receive final approval on Dec. 7 for a $3 billion loan in addition to $6 billion from international lenders.
This comes after Egypt liberalized exchange rates and canceled 5 low-interest financing initiatives, transferring them to government agencies and ministries.
additional terms
According to news reports, the IMF is still asking Egypt for further measures, as if the IMF approves a loan to Egypt, the first installment will only be paid under conditions after achieving a flexible and real exchange rate.
The fund established the abolition of all restrictions on capital and current transfers, as well as the abolition of restrictions on dollar deposits and their use in import transactions.
