11/11/2023–|Last Updated: 11/11/20232.17pm (Makkah Al-Mukarramah)
The latest data from the ‘Refinitiv’ platform showed the Egyptian pound dropped to £32 against the dollar in volatile trading on Wednesday morning.
Egypt promised a flexible exchange rate, an increased role for the private sector and a package of monetary and fiscal reforms when it agreed a $3 billion financial support package with the International Monetary Fund, according to a report published by the. bottom revealed Tuesday.
The country was already under financial strain before the war in Ukraine decimated tourism revenues, raised the cost of importing commodities and prompted foreign investors to withdraw more than $20 billion from the economy.
Data released on Tuesday by the Central Agency for Public Mobilization and Statistics showed that annual consumer price inflation in Egyptian cities rose to 21.3% in December, the highest level since the end of 2017, exceeding the analysts’ expectations.
A report released by HSBC Bank says that the changes in exchange rates in the Egyptian market could end when the dollar reaches 30-35 pounds in the short term.
The bank said in a report released on Monday that this drop in the pound’s exchange rate against the dollar could be accompanied by further hikes in interest rates, especially with the yield on savings bonds hitting 25%.
