The black market for the dollar in Egypt disappears at this time!

Indeed, the pace of black market activity in Egypt has begun to decline recently, as the pages that follow the movement of the dollar indicate a large supply, in exchange for a limited demand for hard currency. Surprisingly, the price of the dollar against the offered pound is close to the average prices offered by Egyptian banks.

The exchange market in Egypt has witnessed major changes since the beginning of this year. After the first flotation announced by the Central Bank of Egypt in its extraordinary meeting last March, the Egyptian currency fell by about 24%, after the dollar exchange rate jumped from the level of 15.74 pounds to about 19.64 pounds at the end of last October.

read more: How much is the fair price of the Egyptian pound against the dollar?

But since the second flotation at the end of October until now, the Egyptian currency has lost about 24.5% of its price, after the dollar exchange rate rose from the level of 19.64 pounds to about 24.45 pounds at the present time.

With regard to the total price losses of the Egyptian pound since last March until today, it amounted to about 55.3% against the dollar, after the US green paper rose by about 8.71 pounds.

In his comment, the economist, Dr. Hani Genena, said that there is no indication so far about the stability of the exchange market in Egypt, especially since the crisis is related to the abundance of the dollar in the Egyptian market.

In his interview with Al, he indicated that Egypt’s name has not yet been placed on the agenda of the IMF Executive Board’s meetings, which indicates the possibility of delaying the arrival of the financing package agreed upon with the Fund.

But on the other hand, the government’s IPO program may be a differential axis. “If it is implemented quickly, we may witness the disappearance of the black market at the beginning of the second quarter of next year,” Geneina said.

read more: An expert in Al Arabiya: Core inflation in Egypt may reach 25%

In the context of controlling the exchange market, the Central Bank of Egypt started implementing a flexible or managed float policy since the end of last October. But so far, speculations are taking place on the dollar in the parallel market, although its pace has declined over the past days.

In parallel with the devaluation of the Egyptian pound, the Central Bank of Egypt announced the cancellation of dealing according to documentary credits with regard to the import file, especially after the accumulation of goods in Egyptian ports, which caused a shortage of a number of goods. Documentary credits are scheduled to expire at the end of next December, according to the instructions of the Central Bank of Egypt.

A few days ago, the head of the Federation of Egyptian Banks, Mohamed El-Etreby, revealed that the price hike was for global reasons due to the Russian-Ukrainian war, and all expectations indicated that the fair exchange rate of a dollar was at the level of 21 pounds.

He pointed out that the banks began receiving the dollars required for the customers to extract goods from the ports, pointing out that the decision to raise the interest rate was important at this time. He stressed the importance of curbing inflation, and this will be achieved with the recent decisions of the Central Bank of Egypt.

He explained that after the latest flotation, we witnessed an increase in the dollar proceeds in Egyptian banks, as the amounts that banks received from exchange companies doubled.

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