Egypt: massive devaluation of the pound against the dollar
This Wednesday, March 6, Cairo carried out a new massive devaluation of the Egyptian pound.
The national currency rose from 31 pounds to the dollar to almost 50 pounds to the dollar.
The currency lost 60% in a few hours against the dollar, the benchmark.
A man walks past a currency exchange point, displaying an image of the US dollar, in Cairo, Egypt, March 6, 2024. © Mohamed Abd El Ghany / Reuters
By: RFI Follow
Advertisement
Read more
With our correspondent in Cairo,
Alexandre Buccianti
In
Egypt
, the Central Bank, which had blocked the rate of the pound for more than a year, this Wednesday gave the green light to banks to buy and sell at the price that suited them.
By the time it closed, the official rate had reached that of the black market, at almost 50 pounds to
the dollar
.
This black market had become, with some exceptions, the real currency market.
Banks were almost unable to obtain dollars except through blocked deposits paying 7% interest on the American currency.
Towards stabilization?
This shortage began to cripple the Egyptian economy.
Industries have come to a halt due to lack of spare parts.
More seriously, food prices have seen their prices explode.
Meat, chicken, eggs, oil, sugar and unsubsidized bread saw their prices triple.
It remains to be seen whether the pound will stabilize or continue to decline.
Also listen to Why the Egyptian economy is in a critical state
Newsletter
Receive all the international news directly in your inbox
I subscribe
Follow all the international news by downloading the RFI application
Share :
Continue reading on the same themes:
Egypt
Economy