The exchange rate of the dollar rose in Egyptian banks once again, crossing 30 Egyptian pounds to the dollar for the first time since 11 January when it jumped to 32 pounds following the fourth devaluation of the local currency since 2016.
The Central Bank of Egypt recently adopted a flexible exchange rate system as per its agreement with the International Monetary Fund (IMF), which offered Cairo a $3 billion loan on condition that changes are made to government spending.
On 12 January, the exchange rate of the US dollar fell slightly to around 29.55 pounds in official banks before it rose again gradually, reaching 30.10 pounds yesterday, an increase of more than 90 per cent compared to its price in mid-March 2022, when it stood at 15.70 pounds per dollar.
Experts predict over the next 3-12 months the Egyptian pound will trade at 32.65-35.40 pounds against the dollar.
Earlier yesterday, Prime Minister Mostafa Madbouly said Egypt is committed to a permanent shift to a flexible exchange rate in order to restore balance to the local currency and achieve fiscal discipline so as to reduce public debt.
Madbouly added that the world is facing exceptional challenges, and that while the government is working to confront these challenges, it is well aware of the mechanisms and policies that contribute to creating a more attractive climate for investment. The Egyptian prime minister also said that Egypt aims to achieve positive economic indicators, including achieving GDP growth rates of 5-10 percent respectively in the years 2024 and 2025.
Egypt President denies that his government has created the economic crisis