The Egyptian pound resumed its declining path against the dollar, hitting £26.4 during Wednesday trading, hours after Emission Banque Misr and the National Bank of Egypt, two branches of the Egyptian government, have issued a new savings bond with a yield of 25% to spend annually or 22.5% to spend monthly, with the aim of withdrawing liquidity from the markets to fight inflation.
The dollar exchange rate this morning was £24.7. Since mid-December last year, the Egyptian pound has fallen against the dollar by about 26.5% in the last quarter of 2022 and by about 66% from January 2022 to date.
Data from Egyptian banks shows that the pound’s exchange rate has been steadily declining since the local currency began declining today.
Enter the local currency Egypt Today, after preempting the International Monetary Fund in its latest loan deal, Egypt moved to a floating exchange rate after scrapping its condition to finance imports with letters of credit late last December.
Egypt obtains its first loan after the IMF loan and tries to contain the dollar’s outflow
Moncef Morsi, co-head of CI Capital’s research department, says: “What is happening now is very logical and is happening in agreement with the International Monetary Fund, and it came after the release of some of the assets held in the ports”.