The former head of the Egyptian Direct Investment Association, Hani Tawfik, said that the current price of the dollar in the Egyptian market is as high as 32 pounds, and it is difficult for the Egyptian Central Bank to raise the official price until it reaches the market price. .
Tawfik added in an interview with Al-Arabiya that the current official price will not remain at £24.70.
He expected the Central Bank to come together to show the International Monetary Fund that Egypt is moving in the right direction and there is some flexibility, not a full placement, but a price increase to a maximum of 28 or 30 pounds.
He explained that in order to agree to a full placement, the central bank must run a fund that works to stabilize the price of the dollar in the market so that it intervenes in open market transactions, whether buying or selling, when its price fluctuates up or down.
Taufik stated that this situation is not currently available and therefore the IMF cannot request a full placement.
The Executive Board of the International Monetary Fund will meet the day after tomorrow, Friday, to discuss Egypt’s request for a four-year $3 billion loan extension agreement.
Egypt reached an agreement on this funding at the expert level in October last year.
In light of Egypt’s commitment to greater exchange rate flexibility, the market is expecting moves from the Egyptian Central Bank within hours, including an increase in interest rates, as well as further devaluation of the pound, as expected.