Investing.com – The price of the black market witnessed a strong decline of EGP 12, from EGP 38 to EGP 26, a severe blow to currency traders, and demonstrates the extent of the state’s successful efforts to eliminate the parallel market that harms the state and citizens and achieve market stability.
The state of confusion and confusion dominated the merchants of the parallel market, which harms national interests, as the dollar exchange rate continued its strong decline after the Central Bank’s decision to raise the interest rate by 300 basis points, or 3%, and in contrast, the recent decisions of the Central Bank of Egypt strengthened the support of the performance of the pound in the exchange market. against the dollar.
On my responsibility
A program on my responsibility, broadcast on Sada Al-Balad channel, said: “There are people who speculated with the dollar on the black market and bought, and after that they bought again and bought, and they had a heart attack.”
And the presenter of the program, Ahmed Moussa, continued: “They bought for 35, 36, and 37 pounds, and after that they had a sweet gift, and they had a heart attack after they lost more than 10 pounds in every dollar.”
The presenter of the program indicated that the black market trade caused heart attacks for the merchants, who bought the dollar at a high price.
pound after the loan
The price of the dollar stabilized after the International Monetary Fund announced in the early morning hours of last Saturday, December 17, in its Executive Board meeting, its approval to grant Egypt a loan of $3 billion for a period of 46 months.
In contrast to the stability of the genie in the official market, the price of the dollar collapsed in the parallel market as soon as the first tranche of the loan was approved.
Local media said that the dollar is now being sold on the black market for less than 28 pounds and up to 26 pounds for a dollar. According to reports, black market traders have intensified their purchases of dollars, up to the price of 37 pounds, hoping that it will be sold for 40 pounds.
Today, Sunday, the official rates screen of the Central Bank revealed the stability of the pound against the dollar, with the selling price recording levels of 24.7653 pounds per dollar, while the purchase price recorded levels of 24.6865 pounds per dollar.
In the national banks, the National Bank of Egypt and Banque Misr, the exchange rate of the dollar stabilized at levels of 24.69 pounds per dollar for sale and levels of 24.64 pounds per dollar for purchase.
In private banks, Al-Masry Al-Khaleeji, Abu Dhabi Islamic, Mashreq Bank, Al-Ahly of Kuwait (Piraeus), and Commercial International (CIB), the selling price recorded 24.75 pounds per dollar, while the purchase price recorded 24.72 pounds per dollar.
pound on the black market
Reports in local newspapers and the Egyptian media revealed that the price of the dollar on the black market is subject to violent and continuous declines in the direction of the parallel price with the official market.
Within about a week, the exchange rate of the dollar on the black market decreased by more than 12 pounds, bringing the exchange rate down from levels of 38 pounds per dollar to levels near 26 pounds per dollar.
According to Reuters reports at the end of last week, and before the signing of the fund’s loan, the exchange rates of the dollar on the black market recorded levels close to 38 pounds per dollar, without any actual implementation.
While CNB Arabia said that the exchange rate of the dollar on the black market has exceeded levels of 33 pounds per dollar, amid a fierce state of speculation in light of expectations of a third flotation of the local currency.
While Al-Arabiya TV said that a state of confusion dominated dollar dealers and dealers in the parallel exchange market in Egypt, as the dollar exchange rate continued to drop to the level of 29 pounds, compared to 38 pounds last Friday.
There is no third float
Mostafa Badra, an economist, says that Egypt had no alternatives to the International Monetary Fund loan, and there is no third flotation of the pound.
The economist added that prices may drop within a month, under the directives of President Abdel Fattah El-Sisi, who promised to solve the crisis within two months. By releasing the goods in the ports.”
Dr. Mostafa Badra added that the IMF stressed that there is no third flotation of the Egyptian pound, but that a flexible exchange rate policy must be followed.
The pound is heading to its fair value
Former Central Bank Governor Hisham Ezz Al-Arab, member of the Board of Directors of the Commercial International Bank (EGX): said: “The currency is one of the means of monetary policy, and it is a means and not a goal.” He added that the local currency is two pounds less than its value against the dollar.
Hisham Ezz Al-Arab said that the black market imposed unjustified numbers as the situation was exploited, and rumors were raised to profit from it, such as the two rumors of the extraordinary Central Bank meeting last Thursday evening, and before that that the IMF would not agree to the program with Egypt.
Ezz Al-Arab revealed that some importers obtained the dollar exchange rate from banks at the official rate, and held consumers accountable for the final product at the black market exchange rates.
Ezz Al-Arab said that the main goal of the government and the Central Bank is to stabilize prices by targeting inflation, stressing that the current problem is the existence of a funding gap as a result of the exit of hot money just before the war and global inflation.
Prohibition of misuse of cards
The Central Bank of Egypt stressed that banks should notify customers by any means of communication that it is prohibited to misuse credit cards and direct debit cards, especially for customers who do not leave the country.
The bank stated in a statement that this comes within the framework of what it notes that there are uses of some credit cards and direct debit cards in operations outside Egypt, despite the presence of customers holding these cards inside the country.
The Central Bank added: “It is prohibited to request currency procurement for purposes of traveling abroad without leaving the country, and banks must review a sample of the uses of these cards that took place outside the country, as well as requests to procure currency for travel purposes since the first of December 2022.”
The Central confirmed that in the event that the bank notices the presence of increasingly frequent uses that contradict the nature of the customer’s uses and that indicates suspicion of the customer’s misuse of the card or the currency that was procured, especially in the event that there are indications that the customer has not left the country, then the bank must inform the central administration to collect Credit Risks of the Central Bank with full data on these customers, and any other cases that appear in such a way as of its date.
Banque Misr and the National Bank of Egypt raised the commission rate on dollar cash withdrawals and purchases outside Egypt to 10% instead of 3%.
According to the data, the commission is deducted from the total value of cash withdrawals and purchases outside Egypt using direct debit cards (linked to the customer’s account) and credit known as credit cards (purchases).
The measure aims to tighten restrictions on the use of foreign currency outside Egypt, at a time when banks are facing difficulties in obtaining dollars.
- Amending cash withdrawal limits in foreign currencies on all cards
- – Amending limits and restricting the use of cards to some purchases from abroad.
- The Central Bank of Egypt called on banks to verify purchases from abroad for customers through their bank cards, and to ensure that they actually left the country during the timing of the purchases.
- The Central Bank of Egypt sent a letter to the banks in the event that the proceeds of export operations related to gold were not received within a maximum period of 7 working days from the date of shipment, and after the bank followed up with the customer for only the next 3 working days, it must inform the Central Bank.