The price of the dollar versus the Egyptian pound broke beyond the 23rd barrier for the first time on Thursday, according to data from Rafnitiv.
The Egyptian pound’s value versus the dollar was 23.15 pounds.
In a special meeting of the bank’s monetary policy committee held today, Thursday, the Central Bank of Egypt announced an increase in the interest rate of 200 basis points, to 13.25 and 14.25, the credit and discount price to 13.75, and the main currency to 13.75%.
This was ascribed by the central bank as supporting medium-term price stability.
The Central Bank indicated that an achievement of sustainable economic growth will reflect the exchange rate of the Egyptian pound against foreign currencies by the forces of supply and demand within the framework of a flexible exchange rate system.
And it did happen that the rise in local and global prices will cause inflation to exceed its targets, which are 7%, by the fourth quarter of 2022, with an increase or decrease of 2%. He emphasised that he closely monitors all economic developments and will not hesitate to use his tools to achieve price stabilisation.
The central bank stated in its statement that the committee affirms that the purpose of raising interest rates is to contain inflationary pressures brought on by the demand side, the high rate of local liquidity, inflationary expectations, and the annual effects of supply shocks. The committee also stated that it will continue to announce the inflation target rates that were started in 2017 in line with the path of inflation rates.
He emphasised the achievement of low and stable inflation rates in the medium term that support the real income of the citizen and maintain the competitiveness of the Egyptian economy, pointing out that the policy of targeting inflation succeeded in reducing its rates up until the emergence of the recent global shock.
The dollar breaks the 23-pound barrier for the first time ever.
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