The black market for the dollar in Egypt.. Will it disappear soon?!

The recent period witnessed the cooperation of the Central Bank of Egypt with the government by issuing decisions aimed at controlling the markets and eliminating the black market for the dollar, after the price of the dollar in Egypt against the pound reached numbers that analysts described as irrational, as it recorded 36 pounds in buying and selling transactions while it was priced Gold and cars at a price of up to 40 pounds to the dollar.

The decisions of the Central Bank were aimed at stopping the sources that feed the parallel market for dollars, so it issued a decision obliging gold exporters to deposit their proceeds in banks within 10 days, or they will be placed on the black list of banks.

Also, the controls issued by the Central Bank regarding the use of credit cards in withdrawals and purchases outside Egypt. At the same time, banks reduced the limits of withdrawals and purchases on cards and increased the commission as well, after observing an increase Card withdrawal rates during the recent period .

In addition to talk about stopping arbitrage operations from stocks to international depository certificates as one of the means used to get the dollar out of Egypt.

The surprise announced by Egyptian Prime Minister Mostafa Madbouly is that Egyptian banks were able, during the month of December, to provide foreign currency for the exit of goods worth $5 billion from the ports, and that they are working to end the crisis of goods accumulated in the ports, of which the remainder was estimated at about $9.5 billion.

But the question is, are these decisions capable of ending the parallel market so that there is only an official market for the currency?

The government, of course, wants to send a message to speculators that the parallel market will be eliminated, and this appeared in media statements by Ambassador Nader Saad, the government spokesman, as he warned of large losses for speculators on the dollar during the coming period, stressing their loss following the decisions taken by the government recently, and expecting that the period The next one will witness greater losses for them.

On the ground, there is indeed a decline in the price of the currency in the parallel market, but this is accompanied by a great state of calm and the absence of large transactions, which some interpret as a state of anticipation for the Egyptian Central Bank’s move to devalue the pound again in light of the agreement with the International Monetary Fund, which included that there be flexibility in the exchange rate.

Analysts confirmed to Al-Arabiya, on condition of anonymity, that until all goods accumulated in the ports are released and Egypt obtains funds from development partners announced by the International Monetary Fund, the parallel market will exist and will gradually disappear with an abundance of foreign currency in the markets.

They pointed out that what is happening now has been witnessed in Egypt several times in the past, and the black market was gradually disappearing with the improvement of Egypt’s dollar revenues.

They said that the parallel market does not disappear suddenly, but witnesses a narrowing of the difference between the formal and informal market, and then gradually disappears.

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