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Reuters: Foreign Investors Pour $925 Mln into Egypt Since Wednesday


Mon 16 Jan 2023 | 10:45 PM
By Ahmad El-Assasy

In the three days following Egypt's currency's steep depreciation last week, foreign investors injected more than $925 million into the country's foreign exchange market, the central bank of Egypt reported in a statement on Monday.

After opening on Wednesday at 27.60 pounds to the dollar, the Egyptian pound fell to around 32 before rising to 29.61 pounds by Monday's conclusion.

Over the previous three business days, the market also received additional foreign currency from domestic sources, remittances from Egyptians working abroad, and tourists, according to the central bank statement.

When Egypt and the IMF agreed to a $3 billion financial aid package in October, Egypt pledged that it would switch to a "durably flexible" exchange rate.

It requested aid from the IMF after Russia's conflict in Ukraine caused its costs for wheat and oil to rise and hurt travel from two of its biggest export customers, Russia and Ukraine, a major source of hard currency.

In order to allow the dollar to float freely, it has been gradually loosening its peg.

In addition to fulfilling requests from other clients, banks were able to accommodate more than $2 billion in requests from Egyptian importers during the course of the previous three days, according to the central bank statement.

After the Egyptian central bank imposed import limits in February, merchandise started to back up in the country's ports. Since the central bank lifted these limitations last month, importers have been scrambling to find cash to discharge their goods.