Unexpected Decline in Dollar Price on Black Market Leads to Temporary Import Ban Initiatives: Updates and Insights

Where an unexpected surprise occurred The decline in the price of the dollar The black market has experienced a major downturn and sudden declines have occurreddollar price on the black market, which made the demand for the dollar disappear amid expectations of a new decline in the dollar dollar price On the black market, and the price may approach within a few days the exchange rate of banks, as a state of turmoil spread in the black market after the increase in the supply of dollars, to rebound with a loss on the currency monopolists who bet on achieving great gains from dealing in the black market.

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While many importers and traders have announced the launch of initiatives aimed at temporarily stopping the purchase of dollars from the black market in order to reduce the demand for dollars and thus the decline in the price of the dollar on the black market.

The head of the Car Dealers Association in Egypt, Counselor Osama Abul-Magd, also stated that an initiative was launched with the aim of temporarily stopping the import of cars to reduce the demand for the US dollar, and stressed that this step had a great resonance, which led to a decline in the price of the dollar on the black market.

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According to the statements made by Counselor Abu Al-Majd, the initiative caused an increase in the supply of dollars in the black market, which plunged it into a state of turmoil and extreme attachment, as the dollar exchange rates witnessed a significant decline.

Other goods temporarily stop importing

In addition to the Automotive Association’s initiative to temporarily stop importing cars, many other commodities joined the initiative, as importers of other commodities such as mobile accessories, quarries, and marble contacted the association, stressing that everyone declared their support for the interest of the country.

Also read: International Monetary Fund expectations for the dollar price during the coming period.

Duration of the Car Dealers Association initiative

The Association of Car Dealers announced that the duration of the initiative is one month, as the initiative began to temporarily boycott the import of cars, starting from the 15th of May 2023, until the 15th of next June 2023, as revealed by Counselor Osama Abu Al-Majd, the head of the association, and confirmed that the period has More than a month, according to the results at the end of the month of the initiative.

According to what was stated in the official report issued by the Central Bank of Egypt, the exchange rate of the dollar against the Egyptian pound stabilized during today’s transactions, compared to yesterday’s transaction levels, as the selling price recorded 30.93 pounds, and the purchase price recorded 30.84 pounds.

In the official market, through the two largest banks in terms of transactions and assets, namely the National Bank of Egypt and Banque Misr, the exchange rate of the dollar against the pound has stabilized since the beginning of morning transactions in the two banks at the level of 30.85 pounds for sale, and the purchase price recorded 30.75 pounds.

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A state of volatility controlling the black market transactions between the decline and the rise in the exchange rate of the dollar against the pound, as a member of importers in the Chamber of Commerce, Ahmed Shiha, announced that the reason for the speculation taking place in the parallel market is the failure of the market to raise the price of the dollar after the decline in demand for it, and he added, that what What happens to the price of the dollar on the black market has no economic basis or explanation, but rather is the result of speculation on the currency that has been described as having turned into a trading process that lacks any mechanisms to control it.

In addition, these speculations belong to black market traders, who spread rumors about a rise The exchange rate of the dollar against the pound On their own, as a psychological process through which the dealers of that currency sense the fear of its high price or its absence from the market, so they resort to buying quantities of it to save it, which achieves huge gains for the parallel market traders in addition to the exporters, but these tricks failed because they became exposed to everyone.

A member of the Importers Division confirmed that there was a state of decline that dominated the price of the dollar in the parallel market, due to the decline in purchasing power for importers. He explained, for example, that the Eid season was funded in order to purchase sacrifices, in addition to the absence of exhibitions during the current time or contracts calling for the importers’ need for dollars. .

Foreign exchange deposit restrictions attract black market dealers

Ahmed Shiha stressed the urgent need to cancel restrictions on depositing foreign exchange in banks, in terms of questioning the source of the currency, which is a prerequisite for approval of the deposit process, and its owners are expelled from dealing with banks, which makes foreign exchange in homes more than in banks because of deposit conditions.

He added, we need to get out as a country from the circle of the single currency, and open the door to dealings in other foreign currencies, according to the currency of the country from which the goods are imported, and stressed that this measure will lead to the elimination of crises of dollar shortage, and the manipulation of the black market in dollars.

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