Central Bank of Egypt (Al Jazeera)

The exchange rate of the Egyptian pound fell to a level close to 46 against the dollar from less than 31 pounds at the beginning of today’s trading, according to data from the London Stock Exchange Group, part of which was quoted by Reuters.

This comes after the Monetary Policy Committee of the Central Bank of Egypt decided - during its extraordinary meeting today - to raise overnight deposit and lending returns and the central bank’s main operation rate by 600 basis points, to 27.25%, 28.25%, and 27.75%, respectively.

The Central Bank of Egypt said that unifying the exchange rate is a very important measure (Al Jazeera)

The bank said that the committee decided to accelerate the monetary restriction process in order to accelerate inflation’s downward path and ensure a decline in monthly inflation rates.

The statement said: “The Central Bank affirmed its commitment to maintaining price stability in the medium term, as part of its keenness to fulfill the role assigned to it to protect the requirements of sustainable development. To achieve this, the Central Bank is committed to continuing its efforts to shift towards a flexible framework for targeting inflation, by continuing to target Inflation as a basis for monetary policy while allowing the exchange rate to be determined according to market mechanisms.”

He added, "Unifying the exchange rate is considered a very important measure, as it contributes to eliminating the accumulation of demand for foreign exchange following the closing of the gap between the official and parallel market exchange rates."

Economic analysts in Egypt expect that a new move of the pound will soon be implemented, after three moves since March 2022.

This comes amid expectations of economic analysts in Egypt that a new movement of the pound will soon be implemented, after three movements since March 2022.

In February 2022, the official price of the dollar in Egypt was 15.7 pounds, while it currently stands at 31 pounds after the three movements.

Meanwhile, Egypt's international bonds jumped by more than two years after the Central Bank raised interest rates, as Tradeweb data showed that the longest-term bonds achieved the largest gains, as bonds due in 2047 recorded an increase of 2.6 cents, reaching 82.3 cents, according to Reuters.

Source: Reuters + Anadolu Agency