The exchange rate of the pound fell to more than 49 pounds per dollar (French)
The collapse of the Egyptian pound against the dollar sparked a state of division in the Egyptian street between supporters and those who rejected the step, which resonated on social media platforms, where several hashtags topped the “trend” list in Egypt, the most prominent of which were “#Egyptian_Pound,” “#Float,” and “#Central_Bank_of_Egypt.” .
Earlier yesterday, Tuesday, and as part of its efforts to combat the black market, the Monetary Policy Committee decided in the decision of the Central Bank of Egypt - during its extraordinary meeting - to raise overnight deposit and lending returns and the Central Bank’s main operation rate by 600 basis points, to reach 27.25% and 28.25%. and 27.75%, respectively.
Immediately after the Central Bank of Egypt's decision, the exchange rate of the Egyptian pound fell to more than 49 pounds per dollar in some Egyptian banks, while the exchange rate was less than 31 pounds at the beginning of today's trading.
🛑The dollar is 50.30 pounds.. Exchange rates at the National Bank #The dollar #Egypt pic.twitter.com/fbKvfmE7Do
- Shorouk News (@Shorouk_News) March 6, 2024
Tweeters commented on the decision by saying that the dollar crisis in Egypt could be resolved, but on the condition that the state relies on local production instead of importing materials, considering that the state that follows a policy of borrowing and selling will keep the situation as it is.
Bloggers said that Egypt is an importing country and production there is weak, and banks cannot provide dollars to everyone, pointing out that fighting the black market is linked to the bank providing the amount that the customer wants without setting a ceiling for withdrawing hard currency.
Others pointed out that the move would cause a rise in essential imported goods, which banks had been transferring at the official rate such as medicines and basic foods.
#Dollar #Official_Rate #Central_Bank #Central_Bank_of_Egypt #National_Bank #Gold
- Basic Commodities: An increase in the prices of all basic imported goods that banks were converting at the official price (for example, medicines, basic foods, production inputs...).
He follows…..
- Tamer Kamel (@EngTamerKamel) March 6, 2024
Others wondered about the possibility of banks continuing to provide hard currency to customers, especially the dollar, pointing out that if this step was taken without an in-depth study of the market, it would be counterproductive to the market and would lead to the pound falling further against other currencies.
On the other hand, some observers considered that the step taken by the Central Bank of Egypt is correct, and is considered important, pivotal and historic for the Egyptian economy, and represents a strong impetus for the progress of the Egyptian economy and joining the international forum, the Group of Twenty (G20) within a decade.
Bloggers pointed out that this step would lead to combating the black market in Egypt, and that this would be a milestone in the history of the Egyptian economy.
The decisions of the #Central_Bank of Egypt that were issued today are important, pivotal, and historic for the Egyptian economy, and they represent a strong impetus for the progress of the #Egyptian_economy and joining the G20 international forum within a decade.#Egypt #Egypt #Long_Long_Egypt #Economy #Dollar #Gold #Egyptian_Pound pic.twitter.com/ 2XSGxpM25I
- Ahmed Qotb - financial market and stock trading expert (@AhmedMMKotb) March 6, 2024
📌 Urgent:
The dollar exceeds the 47 mark against the Egyptian pound in official transactions ▪️
The Egyptian Central Bank is officially floating, which will cause death to the black market.
This will result in
attracting billions of dollars from Egyptian expatriates abroad and others... with a second step following Ras Al-Hikma’s step #Egypt #Sisi
# 🇪🇬♥️
- RHF (@rahaf_m_m_) March 6, 2024
It is noteworthy that the official price of the dollar in February 2022 was around 15.7 pounds, while it currently stands at 31 pounds after the three movements.
Source: Al Jazeera + Reuters + social networking sites