Egypt Awaits New Exchange Rate for Pound to Dollar Conversion

Informed sources told the Egyptian site “Misr Times” about part of the decisions of the meeting of the Central Bank of Egypt, scheduled for tomorrow, Thursday.

Sources have said in exclusive statements to The Egypt Times that there is a trend towards a partial placement, which is pushing the dollar against the Egyptian pound from £4 to £6.

The sources added that central bank officials will issue a package of binding decisions for banks, primarily issuing investment certificates with increased incentives, as well as offering certificates for foreign currency (dollar).

And the Monetary Policy Committee of the Central Bank of Egypt decided at its meeting on February 2, 2023 to keep the interest rate on deposits and overnight loans unchanged at 16.25% and 17.25%, respectively, after raising interest rates by 800%. basis points during 2022 and by 500 basis points in the fourth quarter alone.

In a previous report, the Central Bank of Egypt revealed an increase in the annual rate of core inflation, recording the highest level, reaching 40.3% in February, compared with 31.2% in January.

The annual inflation rate in Egyptian cities jumped to 31.9% in February last year, compared with 25.8% in January last year, according to a statement from the Central Agency for Public Mobilization and Statistics earlier.

The US Federal Reserve raised the dollar interest rate by 25 basis points to reach a new record high in the range of 4.75% to 4.5% as part of the US bank’s efforts to curb rising inflation.

The Fed raised interest rates 7 times in 2022 in meetings in March, May, June, July, September, November and December, and the Fed raised interest rates by 25 bps in February 2023, while 6 more meetings remain throughout period. year, and the next meeting will be held on May 3. track.

Source: Egypt Times