The Federation of Egyptian Chambers of Commerce reported that the black foreign exchange market was completely paralyzed late Thursday evening and deals on Friday morning.

According to the statement, Alaa Ezz, secretary-general of the Federation of Egyptian Chambers of Commerce, said that the recent change in the exchange rate of the dollar in the official market caused confusion in the parallel market, especially due to the narrowing of the price. the gap between the dollar exchange rate on the official and parallel markets.

Since March last year, the Central Bank of Egypt has been pushing hard to control the foreign exchange market, and as part of this, it has announced a long list of measures that included a 73% decline in the price of the Egyptian currency against the US dollar as the green US paper rose from £15.75 last March to about £27.25 now.

The Federation of Chambers of Commerce indicated that the black currency market has completely shut down after a collapse in demand for hard currency from the private sector due to successive issuances made by the government and banks during the last period, which exceeded $6.8 billion. which coincided with a $470 million increase in net cash reserves in December.

He also pointed out that the National Bank and Banque Misr were offering certificates with an unprecedented annual return (25%), which attracted those who were looking for a safe store of value, rather than speculating in dollars, which encouraged those who bought dollars on the black market for the purpose of speculation to get rid of from them after reaching a loss due to a decrease in the market price of Black by about 10 pounds in a week.

He pointed out that with the opening of many Banque Misr and National Bank branches over the holidays to issue 25% certificates, those who speculated on the rate of dollar to pound conversion are expected to buy the certificates. during the holidays at Thursday’s closing price of 27.16 pounds to the dollar, expecting the price to fall to its previous level after the weekend next Monday and incur additional losses.

The Secretary General of the Federation of Egyptian Chambers of Commerce stressed that the integration of monetary, financial and commercial policies and the Central Bank’s use of innovative mechanisms to reduce inflation, as well as the consistent releases of production needs and goods, will have a clear meaning. impact on price stability in the next short period, which coincides with many government initiatives of the Ministry of Supply and Domestic Trade, the Ministry of Trade and Industry and the Ministry of Agriculture, with the Federation of Chambers of Commerce and the Federation of Industry to provide low-cost goods in the transition period.

Previous articleAustralian woman released on bail after visiting ISIS-controlled areas of Syria
Next articleTurkish Defense Minister: Greek provocations will not go unanswered
We provide you with the Latest Breaking News 24 hours a day from around the World.

Leave a Reply