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2023-06-20 09:34:00
12:34 PM Tuesday, June 20, 2023
I wrote – Manal Al-Masry:
Two officials of exchange companies, which have a wide geographical spread, said that the price of the dollar on the black market for currency trading recorded a slight decline following President Abdel Fattah El-Sisi talked regarding ruling out a new devaluation of the pound once more in the current period.
They added that the price of the dollar on the black market fell from 40.5 pounds to 39 pounds, following the demand for its purchase subsided and the activity of customers’ concessions for foreign exchange in exchange companies began, compared to the previous days.
President Abdel Fattah El-Sisi indicated in statements last week that he excluded the option of an additional reduction in the price of the pound during the current period, and he said during the National Youth Conference in Alexandria a few days ago, that “many people are calling for flexibility in the exchange rate and we are flexible in it, but when the issue is related to national security.” And that this will waste the Egyptian people, so do not.”
Egypt’s transition to a more flexible exchange rate led to a sharp decline in the price of the pound, during which it lost regarding half of its value in the past 15 months, and the price of the dollar rose once morest it during this period by regarding 96%, reaching regarding 30.94 pounds for sale in banks now, compared to 15.76 pounds on March 20. 2022, before the currency price moves.
The two sources stated that the movement of concessions on the Saudi riyal returned slightly once more, compared to the almost reluctance to sell the riyal in money exchanges since the beginning of this year, due to the penetration of the black market.
Sources told Masrawy earlier that the start of the pilgrimage season exacerbated the crisis in buying the Saudi riyal due to the increased demand for it in return for the lack of supply of customer concessions, which led to the replacement of customer requests by procuring another currency for them, such as the dollar and the euro.
The International Monetary Fund was late in conducting the first review of the cooperation program with Egypt in economic reform, which includes financing worth $3 billion, which was supposed to take place last March.
This comes amid signs of Egypt’s slowdown in carrying out some reforms, such as shifting to a flexible exchange rate in a sustainable manner, and implementing a program to sell a number of assets in order to attract inflows of foreign exchange, as the government aimed to attract $2 billion from selling some of these assets before the end of this June. .
The International Monetary Fund, as it has indicated on several occasions, links the success of the Egyptian economic reform program to Egypt’s commitment to adopting a more flexible exchange rate.
Egypt began moving to a flexible exchange rate regime since March 2022 to face the repercussions of the Russian-Ukrainian war on the Egyptian and global economy, which led to the exit of $22 billion in indirect foreign investments in a short period, which was reflected in the availability of foreign currencies, causing a shortage crisis so far. But the exchange rate has returned to stability in recent months.
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