A Bloomberg Agency report on the Egyptian pound sparked fear and anger among Egyptians.. Why?

The interactive bulletin - your newsletter (1/8/2022) monitored the state of anxiety and controversy on social media platforms, where the tweeters expressed their anger at the continued deterioration of the value of the pound against the dollar, and said that the flotation of the pound had a significant impact on the deterioration of the economy. Egyptian, as they put it.

On the other hand, others saw the liberalization of the pound as an inevitable necessity to reform the belated economy, as they described it.

And Bloomberg Agency pointed out in its report that the Egyptian currency has plunged by 20% since last March, the month that witnessed the Central Bank of Egypt devaluing the pound after the US Federal Reserve raised the interest rate.

She added that 2016 was the worst year in the history of the Egyptian currency, as it recorded its lowest level ever, when the Central Bank decided to float the local currency against the dollar to reach about 20 pounds per dollar.

The agency indicated that several factors caused a sharp decline in the exchange rate of the pound, including the collapse of the foreign exchange reserve of the Central Bank from a record level of 45.5 billion dollars in March 2020, to 33.1 billion dollars during last July.

Domestic and foreign debts have increased to $409 billion, making it the largest of its kind in the Arab countries.

Ramzy Masoud saw that the deterioration of the Egyptian pound was due to the decision to float, so he wrote, “A wrong decision one day floated the pound. The World Bank is the one who will control (control) the rise of the dollar against the pound, and the dollar will reach (will) reach 30 pounds, and all this (this is ) Because of the loans that are taken for (taken for) economic reform, and I hope there will be reform, but all that happens is a further deterioration of the economy.”

While Mohamed Saleh warned of a major problem facing the Egyptian economy, he tweeted, “Egypt is facing an economic problem, and the Egyptian media is far from the economy, the Egyptian pound continues to decline, the state continues to borrow, and the government is implementing economic reform programs requested by the International Monetary Fund to approve lending, Egypt She needs quick cash, otherwise she will not be able to abide by her financial commitments, and where are the Egyptian companies?

On the other hand, Abu Youssef Hajjaj believes that flotation was an inevitable necessity. He said: "The liberation of the Egyptian pound is an inevitable necessity to reform the economy, and it is inevitable that the pound must be completely liberated, to reach its price and value."

Muhammad Lamlum called for endurance in order to advance the country's economy, so he wrote, "You guys must (it was necessary for this to happen). Economic reform has taxes that we must bear, but be patient, all of this will (will) benefit you in the end."

In turn, the tweeter Khaled warned of a black market if the pound was fixed at a price lower than its real value. He said, "Let us suppose that the Central Bank of Egypt has fixed the price of the pound at 19 against the dollar. In fact, it is equal to 27 (for example), there will be a black market with the price of the dollar ranging In it, between 20 and 24 pounds, and the businessman will go to the black market for exchange instead of the banks. Thus, the country will enter the fray of the black market for currencies.”