The Egyptian market is awaiting the Central Bank’s announcement of its decision regarding the interest rate on lending and depositing, which is scheduled to be announced this evening, Thursday, following the Monetary Policy Committee’s meeting.
Many market analysts expected the central bank to raise the interest rate between 1 to 2% today, citing the continued rise in the core inflation rate, in addition to the US Federal Reserve raising interest rates on the dollar.
Yesterday evening, the US Federal Reserve raised the interest rate on the dollar by 0.75% to become 3.25%, and this decision is usually followed by most of the world’s banks raising interest rates on their currencies in an attempt to prevent the deterioration of the value of their local currency, which is usually linked to the price of the dollar, as a global reserve currency..
The decision to raise interest rates on the dollar in America often leads the price of the dollar in other countries to rise, and increased the dollar’s strength. , which significantly negatively affected the performance of global currencies.
Currency markets in the world suffer from a state of instability during the other two months, for several reasons, including the continued rise in inflation in the largest global markets such as the United States, where the inflation rate reached record levels exceeding 8.3%, for the first time in 40 years, which forced the Bank The US Federal Reserve has taken violent measures to confront inflation, led by a series of decisions to raise interest rates on the dollar, which damaged the value of most currencies linked to the value of the dollar, which led to a large and often sharp decline for most of these currencies, as well as the continued rise of inflation in each of the European Union countries. and China.
Most of the world’s economies are also suffering from the repercussions of the Ukrainian-Russian crisis on the global economy, and the continued spread of the Corona virus in many places in the world, especially China, which caused the return of closures to many industrial places in China, which caused a major supply crisis for most countries that depend on Chinese raw materials and industries.
