The value of the Egyptian pound is declining once more once morest the dollar in Egypt, following the Central Bank of Egypt adopted a more flexible exchange policy.
-
The successive rises in the price of the dollar in the Egyptian exchange market led to an unprecedented wave of inflation
Today, Wednesday, the US dollar recorded its highest level ever in the Egyptian exchange market, exceeding 30 Egyptian pounds per dollar.
With the rise in the price of the dollar to more than 30 Egyptian pounds, the pound has lost regarding half of its value since last March, when the Central Bank of Egypt announced a more flexible policy in the exchange market, while the dollar exchange rate at that time was less than 16 Egyptian pounds.
Last March, the Central Bank of Egypt announced a more flexible exchange policy, once morest the backdrop of a sharp decline in Egypt’s foreign exchange reserves, which fell from more than $40 billion to less than $34 billion.
The jump recorded by the dollar today, from regarding 27 pounds to more than 30 pounds per dollar, is the third in less than a year.
Before the end of last October, and before concluding an agreement with the International Monetary Fund, according to which Egypt would obtain a loan of $3 billion, the bank lowered the exchange rate of the pound once more, bringing the price of the dollar to less than 24 pounds, following which it recorded partial successive increases that brought it to Over 27 pounds yesterday.
And yesterday, Tuesday, the International Monetary Fund held a press conference announcing the terms of the agreement concluded with Egypt, which included Egypt’s commitment to a complete liberalization of the exchange rate, so the dollar rose once more to exceed 30 pounds.
The successive rises in the price of the dollar in the Egyptian exchange market led to an unprecedented wave of inflation, as inflation rates rose to their highest levels in five years.
Core inflation, according to the data of the Central Bank of Egypt announced yesterday, Tuesday, exceeded the level of 24%, while general inflation reached 21.9%, according to the Central Agency for Public Mobilization and Statistics bulletin yesterday.