A state of confusion and extreme caution dominated dollar dealers and dealers in the parallel exchange market in Egypt. In late trading on Sunday, the exchange rate of the dollar continued to drop outside the official market to the level of 29 pounds, compared to 38 pounds in last Friday’s trading.
Sales posts dominated the pages that monitor exchange rates on social media platforms, while small merchants quickly began their moves to get rid of the dollars they had in anticipation of the continued decline in prices.
These losses come despite the lack of intervention by the Central Bank of Egypt so far, but they are directly related to the announcement of the approval of the Executive Board of the International Monetary Fund for the financing package for Egypt.
In the official exchange market, the exchange rates of the dollar against the Egyptian pound have stabilized in Egyptian banks. The exchange rate of the dollar witnessed a significant movement against the Egyptian pound during the last period, as it rose during the past month between 50-60 piasters.
In the two largest banks in terms of assets and transactions, the dollar exchange rate at the National Bank of Egypt and Banque Misr recorded a level of 24.61 pounds for purchase, and 24.66 for sale. In private banks, the exchange rate of the dollar in the Commercial International Bank of Egypt recorded a level of 24.65 pounds for purchase, and 24.72 pounds for sale, and in the Egyptian Gulf Bank, it recorded 24.69 pounds for purchase, and 24.72 pounds for sale.
And at the Central Bank of Egypt, the average prices of the dollar against the Egyptian pound recorded 24.66 pounds for purchase, and 24.74 pounds for sale.
It is expected that the black market will witness further declines in the exchange rate of the dollar in the coming days, especially since expectations indicate that the Central Bank of Egypt intends to issue several decisions that will reduce the demand for dollars from outside the official market, especially after the arrival of the first financing tranche from the Monetary Fund. international.
According to a recent statement, the Egyptian Cabinet revealed that the agreement approved by the fund’s board of directors and the financing accompanying it for the Egyptian authorities will allow an additional external financing package through a variety of international and regional institutions, as well as through global financial markets. The agreement provides the ability for the Egyptian state to apply for additional financing through the newly established “Resilience and Sustainability Fund” of the International Monetary Fund.
The International Monetary Fund’s approval of the comprehensive national economic reform program represents an additional confirmation of the support of the international community and development partners for the Egyptian economic reform program. It also reflects confidence in Egypt’s capabilities to fulfill its international obligations and its ability to achieve the targeted economic growth rates.
The Egyptian Cabinet indicated that the fund’s board of directors’ approval of the experts’ report, which was agreed upon with the Egyptian government and the Central Bank of Egypt last October, without any additional conditions or burdens, adds to the Egyptian economy a new certificate of confidence and also gives a positive signal to the local markets. And foreign affairs, and gives a strong impetus to encourage investments, exports and international trade with Egypt.
The Egyptian comprehensive and national economic reform program aims to enhance macroeconomic stability and ensure the sustainability of public debt in the medium term, and work to enhance the Egyptian economy’s resilience, resilience, and ability to face external shocks, which have recently increased in intensity and recurrence at the global level. The comprehensive national economic reform program for Egypt also includes An important axis related to strengthening the social safety net in a way that guarantees effectiveness and targeting.