Saturday 21 Dec
For the first time since the exchange rate was liberalized, the US dollar surpassed the 50-pound mark in official transactions on Thursday morning. Several public and private banks recorded a price slightly above 50 pounds, following a sharp increase of over 30 piasters.
This development aligns with the recent statements of Prime Minister Dr. Moustafa Madbouly, who acknowledged the possibility of exchange rate fluctuations within a 5% range. He emphasized that these changes are a natural consequence of a free market system, driven by supply and demand dynamics.
The International Monetary Fund
(IMF) is in the midst of its fourth review of the expanded program designed to
bolster Egypt's economy. A crucial component of this program is the flexibility
of the Egyptian pound's exchange rate. The Central Bank of Egypt (CBE) has
reiterated its dedication to maintaining this flexible exchange rate system as
a protective measure against external economic shocks.
The successful conclusion of the fourth review is anticipated to trigger the disbursement of a substantial $1.3 billion tranche from the IMF loan. This tranche represents the largest installment of the loan to date. The previous tranche, amounting to $820 million, was approved in May.
