The Central Bank of Egypt stated in its statement, "The exchange rate of the Egyptian pound will reflect the value of the currency once morest other foreign currencies through the forces of supply and demand, within the framework of a flexible exchange rate system.".
The Central Bank indicated that documentary credits in import financing operations will be gradually canceled until the complete cancellation in December.
Consequences of the decision
The CEO of the company said "Three way" For Securities Exchange, Rania Yacoub, that the move to float the Egyptian pound was expected, in light of the high rates inflation Since the beginning of the year, specifically since the outbreak Ukraine crisis.
She added that the Egyptian pound fell once morest the dollar by regarding 15 percent, following an exceptional meeting of the Monetary Policy Committee of the Central Bank of Egypt, on Thursday.
Yacoub explained that the Egyptian government has taken steps to protect the groups most affected by the move, following it raised the minimum wage to 3000 pounds and increased pensions.
On the impact of the decision on prices, Yacoub said that she does not expect a wave of increase in commodity prices, stressing that the markets were anticipating the decision, and had already absorbed the expected increase in foreign currency prices once morest the pound.
On the other hand, the CEO of the company "Three way" The decision will positively affect sectors in the Egyptian Stock Exchange, which will benefit from the process of revaluing assets following the pound’s decline once morest the dollar.
She explained that some sectors will also benefit from the decision to raise interest rates, such as the banking, petrochemical, housing and others sectors.
Regarding the decision to cancel the documentary credits, Yacoub explained that the decision contributes to the return of the markets to their normal state, but the global problems related to the movement of goods and raw materials in the world, which are not in their normal state, may curb the effect of the decision.
She stressed that it is difficult for the situation to return to what it was before the outbreak of the Ukrainian crisis in February 2022.
Impact on the Egyptian Stock Exchange
The main index of the Egyptian Stock Exchange rose "EGX 30" By 4.2 percent by 09:40 GMT, the most prominent sectors were the basic resources sector by 7 percent, the transportation and shipping services sector by 5.07 percent, and the services and industrial products sector by 4.88 percent.
Certified Financial Broker BEgyptian Stock ExchangeMohamed Mahdi Abdel-Nabi, said that the decision to move the exchange rates of the Egyptian pound once morest foreign currencies has had a strong positive impact on the Egyptian market.
Abdel-Nabi explained that the positive impact of the decision on the market will be temporary, noting that investors are anticipating the amount of funding that Egypt will receive from the International Monetary Fund.
And announced the head of the mission International Monetary Fund To Egypt, the Egyptian government and the fund have reached a financing agreement worth $3 billion for a period of 46 months, according to Archyde.com.
Prime Minister Mostafa Madbouly said that Egypt will receive a total of $9 billion in financing, divided into $3 billion from the International Monetary Fund, $1 billion from the Sustainability Fund, and regarding $5 billion from partner countries and other international institutions.
Abdel-Nabi stressed that the positive impact will continue if the decision is followed by more acquisitions by Gulf companies to buy Egyptian companies listed on the market.
And yesterday, experts favored the site "Sky News Arabia Economy" that the efforts ofto the Central Bank of Egypt Currently directed to study and identify the major global currencies, for which an index will be developed that measures the performance of the pound once morest them with gold and any other elements, which may be accompanied by a complete liberalization of the exchange rate in Egypt before the launch of the new index in order to measure the real performance of the pound once morest the rest of the currencies.
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Come move Egyptian Pound following a decision Egyptian Central Bank By raising the country’s interest rates by 200 basis points, The overnight deposit and lending rates become 13.25 percent and 14.25 percent, respectively.
And the Central Bank of Egypt stated in its statement, “The exchange rate of the Egyptian pound will reflect the value of the currency once morest other foreign currencies through the forces of supply and demand, within the framework of a flexible exchange rate system.”
The Central Bank indicated that documentary credits in import financing operations will be gradually canceled until the complete cancellation in December.
Consequences of the decision
The Chairman of the Board of Directors of “Three Way” Securities Brokerage, Rania Yacoub, said that the move to float the Egyptian pound was expected, in light of the high rates inflation Since the beginning of the year, specifically since the outbreak Ukraine crisis.
She added that the Egyptian pound fell once morest the dollar by regarding 15 percent, following an exceptional meeting of the Monetary Policy Committee of the Central Bank of Egypt, on Thursday.
Yacoub explained that the Egyptian government has taken steps to protect the groups most affected by the move, following it raised the minimum wage to 3000 pounds and increased pensions.
On the impact of the decision on prices, Yacoub said that she does not expect a wave of increase in commodity prices, stressing that the markets were anticipating the decision, and had already absorbed the expected increase in foreign currency prices once morest the pound.
On the other hand, the Chairman of the Board of Directors of “Three Way” explained that the decision will positively affect sectors in the Egyptian Stock Exchange, which will benefit from the process of revaluation of assets following the decline of the pound once morest the dollar.
She explained that some sectors will also benefit from the decision to raise interest rates, such as the banking, petrochemical, housing and others sectors.
Regarding the decision to cancel the documentary credits, Yacoub explained that the decision contributes to the return of the markets to their normal state, but the global problems related to the movement of goods and raw materials in the world, which are not in their normal state, may curb the effect of the decision.
She stressed that it is difficult for the situation to return to what it was before the outbreak of the Ukrainian crisis in February 2022.
Impact on the Egyptian Stock Exchange
The main index of the Egyptian Stock Exchange “EGX 30” rose by 4.2 percent by 09:40 GMT, and the most prominent sectors were the basic resources sector by 7 percent, the transport and shipping services sector by 5.07 percent, and the services and industrial products sector by 4.88 percent.
Certified Financial Broker BEgyptian Stock ExchangeMohamed Mahdi Abdel-Nabi, said that the decision to move the exchange rates of the Egyptian pound once morest foreign currencies has had a strong positive impact on the Egyptian market.
Abdel-Nabi explained that the positive impact of the decision on the market will be temporary, noting that investors are anticipating the amount of funding that Egypt will receive from the International Monetary Fund.
And announced the head of the mission International Monetary Fund To Egypt, the Egyptian government and the fund have reached a financing agreement worth $3 billion for a period of 46 months, according to Archyde.com.
Prime Minister Mostafa Madbouly said that Egypt will receive a total of $9 billion in financing, divided into $3 billion from the International Monetary Fund, $1 billion from the Sustainability Fund, and regarding $5 billion from partner countries and other international institutions.
Abdel-Nabi stressed that the positive impact will continue if the decision is followed by more acquisitions by Gulf companies to buy Egyptian companies listed on the market.
Yesterday, experts suggested to the “Sky News Arabia” website that the efforts ofto the Central Bank of Egypt Currently directed to study and determine the major global currencies, for which an index will be developed to measure the performance of the pound once morest gold and any other elements, which may be accompanied by a complete liberalization of the exchange rate in Egypt before the launch of the new index in order to measure the real performance of the pound once morest the rest of the currencies.
