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Dollar Price Suffers Blow in Egypt's Parallel Market

Sun 04 Feb 2024 | 05:23 AM
Dollar Exchange Rate Exceeds EGP 24 Barrier
Dollar Exchange Rate Exceeds EGP 24 Barrier
Taarek Refaat

The price of the dollar stabilized in Egypt Saturday, in the official banking sector, while it declined on the black market.

The price of the dollar on the black market lost about 8 pounds, affected by the decision of the Central Bank of Egypt (CBE) to raise the interest rate by 200 basis points, and the positive negotiations with the International Monetary Fund, and the announced support from the EU.

CBE raised the interest rate by 2% to 21.25% for deposits and 22.25% for lending.

Discussions between Egypt and the IMF witnessed “excellent progress” regarding the comprehensive policy package; necessary to reach agreement at the expert level for the “first and second” combined reviews of the economic reform program, according to the head of the Fund’s mission to Egypt, Ivana Vladkova.

Vladkova said, in a statement, that the Fund and Egypt agreed on the main policy elements of the program, as the Egyptian government expressed its strong commitment to immediately work on all important aspects of the economic reform program.

She added that discussions will continue with the Egyptian government virtually in the coming days to put the final touches on the economic and financial policy memorandum, and determine the amount of additional support that the Fund and other bilateral and multilateral development partners will provide necessary to help Egypt fill the growing deficit.

The price of the dollar on the black market fell to 65 pounds, compared to 73 pounds, according to dealers familiar with the parallel market prices.

The price of the dollar in the Central Bank of Egypt recorded 30.82 pounds for purchase and 30.95 pounds for sale.

Prices of gold, which determines the value of the parallel dollar, also declined severely during the past days.

However, some reports indicate that the average price of the dollar in Egypt during the year 2024 will reach 37.40 pounds, which means that the price of the dollar in Egypt will not decrease.