within hours of the announcement International Monetary Fund His approval of the financing package for the third phase of the reform program being conducted by the Egyptian government, the dollar exchange rate continued its decline in the parallel market, recording losses of more than 30 percent.
He mentioned dealers and dealers in Black market In Egypt, the exchange rate of the dollar fell from the level of 38 pounds in trading on the morning of Friday, December 16, to the level of 29 pounds in late trading on Sunday, December 18, so that the green American paper lost regarding nine pounds of its value, with a decrease of regarding 31 percent. cent once morest the Egyptian pound.
And the Egyptian government revealed, according to a recent statement, that the agreement approved by the fund’s board of directors will provide an additional external financing package for Egypt through a variety of international and regional institutions, as well as through global financial markets. The agreement provides the ability for the Egyptian state to apply for additional financing through the newly created Resilience and Sustainability Fund within the International Monetary Fund.
The dollar stabilizes once morest the pound
And in the official exchange market, the exchange rates of the dollar once morest the Egyptian pound were stable in Egyptian banks. The exchange rate of the dollar witnessed a significant movement once morest the pound during the last period, when it rose during the past month between 50 and 60 piasters.
In the two largest banks in terms of assets and transactions, the dollar exchange rate at the National Bank of Egypt and Banque Misr recorded a level of 24.61 pounds for purchase, and 24.66 for sale. In private banks, the exchange rate of the dollar in the “Commercial International Bank – Egypt” recorded a level of 24.65 pounds for purchase, and 24.72 pounds for sale, and in the “Egyptian Gulf Bank” it recorded 24.69 pounds for purchase and 24.72 for sale.
And at the Central Bank of Egypt, the average prices of the dollar once morest the Egyptian pound recorded 24.63 pounds for purchase, and 24.71 pounds for sale.
In terms of major currencies, the single European currency (the euro) recorded a decline between 15 and 5 piasters in buying and selling in Egyptian banks. At the National Bank of Egypt and Banque Misr, the exchange rate of the euro reached 26.05 pounds for purchase, and 26.29 for sale. At the Central Bank of Egypt, the exchange rate of the euro has stabilized at 26.15 pounds for buying, and 26.24 for selling.
The pound sterling recorded a sharp decline between 60 and 50 piasters in buying and selling in Egyptian banks. At the National Bank of Egypt and Banque Misr, the exchange rate of the pound sterling recorded a level of 29.82 pounds for purchase and 30.14 pounds for sale, while the Central Bank of Egypt reached a level of 30.34 pounds for purchase and 30.44 for sale.
In the Arab world, the exchange rate of the Saudi riyal at the National Bank of Egypt and Banque Misr recorded a level of 6.54 pounds for purchase, and 6.55 pounds for sale, and the exchange rate of the UAE dirham reached a level of 6.70 pounds for purchase, and 6.71 pounds for sale. The exchange rate of the Kuwaiti dinar recorded a level of 77.42 pounds for purchase, and 80.46 pounds for sale, according to the National Bank.
Positive signal for foreign markets
It is expected that the black market will witness further declines in the exchange rate of the dollar during the coming days, especially since expectations indicate that the Central Bank of Egypt intends to issue several decisions that will reduce the demand for dollars from outside the official market, especially following the arrival of the first financing tranche from the IMF. international.
The International Monetary Fund’s approval of the comprehensive national economic reform program represents an additional confirmation of the support of the international community and development partners for the Egyptian economic reform program. It also reflects confidence in Egypt’s capabilities to fulfill its international obligations and its ability to achieve the targeted economic growth rates.
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The Egyptian government indicated that the fund’s board of directors’ approval of the experts’ report that was agreed upon with the Central Bank of Egypt last October, without any additional conditions or burdens, but adds to the Egyptian economy a new certificate of confidence, and also gives a signal. Positive for the local and foreign markets, and gives a strong impetus to encourage investments, export and international trade movement with Egypt.
The Egyptian comprehensive and national economic reform program aims to enhance macroeconomic stability and ensure the sustainability of public debt in the medium term, and work to enhance the Egyptian economy’s resilience, resilience, and ability to face external shocks, which have recently increased in intensity and frequency at the global level. The comprehensive national economic reform program for Egypt also includes an important axis linked to strengthening the social safety net in a way that guarantees effectiveness and targeting.
The new program is expected to achieve the greatest degree of protection for vulnerable classes. The reform program also includes accelerating efforts to increase the competitiveness of the Egyptian economy by adopting an integrated and coherent package of policies, measures and structural reforms that would achieve a path of high and sustainable growth, driven by a greater role and contribution from the private sector, to ensure the creation of productive and sufficient job opportunities.
Goods stacked at ports
Despite the lack of availability of the dollar in the official market sufficiently to meet the needs of the local market, it is expected that the crisis will witness a major breakthrough in the coming days, especially since the reason for the exacerbation of the crisis is directly due to the increase in the volume of goods stacked in Egyptian ports, which are awaiting the termination of their documentary credits. .
According to the data of the Central Bank of Egypt, the documentary credits are scheduled to expire at the end of this December, which were previously approved earlier in the year, within the framework of the government and the Central Bank’s moves to legalize import operations and stop the “import foolishness” that was causing the country’s resources to be drained from Hard currency.
According to unofficial estimates, the value of goods stacked in Egyptian ports exceeds $6 billion, and the Egyptian government is expected to receive financing tranches worth more than $1.5 billion this December, whether from the International Monetary Fund or international partners. It is also likely that the Central Bank of Egypt will announce its intervention by pumping dollar liquidity through periodic weekly bids, to cover banks’ dollar needs and finance import operations.