The past few days witnessed a sudden decline in the exchange rate of the US dollar. The current price is approaching the currency’s official value in Egyptian banks, after significantly dropping EGP 12.
The dollar dropped approximately 35% in Egypt’s black markets, and its worth went down from EGP 38 to EGP to less than EGP 28.
Following the approval of a $3 B loan by the International Monetary Fund (IMF), illegal traders suffered a state of confusion, which led to this collapse in the US dollar’s rate in the black market.
On Thursday, authorities announced at the meeting that the exchange rate of the dollar against the Egyptian pound has remained stable for the ninth day in a row in the central bank and all national banks. Furthermore, the CBE raised increased the interest rate by 3%.
During the same meeting, the overnight deposit and lending rates and the bank’s main operation rate remained stable at 25.11%, 25.12%, and 75.11%, respectively. The credit and discount rates were also stabilized at 75.11%
Additionally, the CBE raised the cash reserves percentage from 14% to 18%, and the CBE’s Monetary Policy Committee (MPC) raised the deposit rate to 16.25% and its lending rate to 17.25%.