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Wednesday, August 2, 2017

Dollar price today against egyptian pound

In a surprise morning announcement, the Central Bank of Egypt announced that it has floated the Egyptian pound against all foreign currencies.
Egypt's pound plunged in value on Thursday as the central bank floated the currency to address a dollar crunch that threatened to cause some imports to grind to a halt.
The dollar was trading on official markets at between 13.5 and 14 Egyptian pounds, according to several banks contacted by AFP, up sharply from the previous rate of 8.8.
The government of President Abdel Fattah al-Sisi is rolling out an austerity programmed and seeking billions in support from abroad in order to meet conditions, including devaluation, for a $12 billion loan from the International Monetary Fund.

the Egyptian pound was floated to EGP 13.00 per USD 1.00. Selling a US dollar, however, yields EGP 13.50. Prior to the devaluation, the US dollar’s official selling price was EGP 8.88, while the buying price stood at EGP 8.85. On the parallel market, however, the greenback reached an all-time high of EGP 18 earlier this week
this is not the first time that Egypt has moved to a more flexible exchange rate. In January 2003, the country devalued the currency by 14 per cent – a move that killed a black market trade in US dollars and attracted billions of dollars in international investment before the financial crash of 2008
This decision was preceded by several steps in 2001 and 2002 to decrease the value of the Egyptian pound against the dollar, and led to an increase in the exchange rate, from LE3.85 to LE4.51 to the dollar..
One of the objectives for abandoning the Egyptian pound's U.S. dollar peg was to close a black market for dollars that had boomed after the central bank imposed capital controls last year. The pound had slid to a record low of 18 per dollar on the unofficial market last Sunday."I hope the black market disappears. There's no reason for it to continue now banks are buying at equilibrium prices."

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