After being stable for almost two days and an unprecedented increase, the dollar’s exchange rates to the Egyptian pound surged today, Monday.
Today’s dollar exchange rate was 24. 15 versus the Egyptian pound, approaching the 25-pound threshold—a price never before seen in Egypt’s history—in order to get Egypt ready to apply for a new loan from the International Monetary Fund.
Following a decline in the value of the Egyptian pound relative to other currencies and the Egyptian Central Bank’s decision to boost the bank interest rate by 2%, the dollar’s worth increased significantly.
In a rare meeting on Thursday, the Central Bank of Egypt voted to increase the interest rate by 200 points, or 2%.
This was done in order to assist the objective of medium-term price stabilisation.
In its extraordinary meeting, the Monetary Policy Committee resolved to increase the cost of deposits and loans for one night as well as the cost of the Central Bank’s primary operations by 200 basis points each, bringing them to 13.25 percent, 14.25 percent, and 13,75 percent, respectively.
During the fourth quarter of 2022, it is anticipated that the rise in both local and worldwide prices will cause general inflation to exceed the Central Bank’s target counterpart of 7% ( 2 Celsius).
The committee emphasises that pressure control is the primary goal of raising the return prices. Demand-related violations, rapid local liquidity expansion, inflationary expectations, and follow-on impacts of supply shocks.
Author: RT.
The dollar has recently increased in Egypt and is already approaching the 25-pound mark.
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