The pages on social media they are waging a war against the Egyptian pound

In a moment in which dozens of pages on social network they spoke of continuous and successive hikes in the dollar exchange rate against the pound in the Egyptian market, the foreign exchange market witnessed a state of stability after Eid al-Fitr’s return from the holidays.

In recent transactions, the dollar exchange rate at the National Bank of Egypt and Banque Misr has stabilized at £ 18.45 for the purchase and £ 18.51 for the sale.

As for the Commercial International Bank, the dollar registered a level of 18.45 pounds in purchase and 18.53 pounds in sale.

In the Bank of Alexandria, the American banknote recorded 18.46 pounds for the purchase and 18.53 for the sale, while the average exchange rate in the Central Bank of Egypt recorded 18.44 pounds for the purchase and 18. , 52 for sale.

On the other hand, the pages widely spread on the sites of social networksuch as the page “Dollar prices in Egypt in first person, “they spoke of dollar exchange rates hovering between 19 and 20.5 pounds, despite the dollar’s exchange rate falling by a slight percentage after banks returned to work earlier this week.

There is no return to the dollar

While the content of these pages or what their members circulate indicate the return of dollarization and the emergence of the black market again, but the continuing movements of the Central Bank of Egypt confirm that there is no return to dollarization, and which will not allow currency traders or the black market to return again after its complete elimination from the decision The first free float issued in early November 2016.

The head of the Co-ordinating Council of Foreign Exchange Companies of the Federation of Chambers of Commerce, Ali Hariri, revealed in recent statements that more people are currently looking to buy the dollar due to rumors circulating in the market.

He attributed the high demand for the dollar to speculation that the central bank could depreciate the pound again in the coming days to cope with mounting financial pressures caused by rising US interest rates and the fallout from the Russian-Ukrainian war.

While the black market controlled much of the dollar trading in the Egyptian market, the decision to float the Egyptian pound against the US currency in 2016 and accompanying measures represented tightening control over the foreign exchange market and violating exchange control. companies and closing most of them due to violating Central Bank instructions, and speculating on the dollar, all of which caused the end of currency trading in Egypt.

New controls

Last February, the Central Bank of Egypt issued a decision to stop processing collection documents during import operations and to deal only with documentary credits.

The Central Bank has allowed goods previously shipped prior to the issuance of this decision to be processed through collection documents at the customer’s request, and both branches of foreign companies and branches of foreign companies have been excluded from tale decision within the scope of the import operations only from the parent company and its groups.

The Central Bank has excluded from the application of this decision shipments received by express mail and shipments up to the amount of $ 5,000 or its equivalent. in other currencies, in addition to their medicines, serums and chemicals, as well as a number of important food products.

He also directed to reduce all documentary credit fees in all banks in so that they were like commissions for collection acts, to increase existing credit limits for customers and to open new limits for new customers in proportion to each client’s import volume, and to open all documentary credits required by all clients upon their request.

A few days ago, banks approved in the past week new instructions preventing the acceptance of foreign exchange assets of unknown origin or obtained from foreign exchange companies, in import operations.

According to the data, it is the internal currency resources deriving from the customer’s activity that can be used in import operations, according to the instructions and controls in force in this regard.

This means that the importer or trader will not be able to finance his import operations except in two ways, or through the bank and the other through his own resources deriving from his activity.

The instructions included that “Deposits are not allowed to be used in cash or transfers in foreign currency from the customer’s account from other banks in carrying out its import operations “.

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