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How Dollar Price Effects Egypt

Egypt's central bank has bold move, a historical adventure on the dangers substantial decline in local currency which, and the tremendous decline Historically Egyptian pounds in the parallel market, and it was expected that , until it plunged more than 100% exceeded the previous official rate on Tuesday.

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Central Bank of Egypt


The Central Bank of Egypt, has done a bold historical threats as a result of which the local currency is the Egyptian pound and the parallel market from a lot of people believe that from a strong, and historically, it was also expected that it had fallen more than the official rate of 100‏% last Tuesday has been exceeded. With the currency had fallen a total of 3 per cent in the local central bank interest rates to increase resolution is passed, the price had fallen to the people according to the expected currency is the result of the price hike after the Central Bank's conduct of monetary policy, and a natural to come to the Committee's decision a $13 pounds and he is also likely to add 10%, i.e. a The price of £ 14.30 dollars will reach 32.3 percent in pounds, overall had fallen, and from the beginning of the Sunday interbank working in Egypt through banks to foreign currency price has been decided to freedom. In the first reaction from the Egyptian stock exchange in early trading as 8.3% is added in.

A reduction in the value of a currency after the dollar, which has made 13 Egyptian pounds. Before the official market price was about us $9 a pound. Last week, however, the black market one dollar is malicious to Egyptian pounds 18. Egyptian pounds after daily use items drop in price prices will add to the pressure on the Government of President.

The President has repeated in recent weeks Egyptians forcefully order to deal with the worst economic crisis faced by the country they work with. Their patience to deal with the economic crisis, the Egyptian word for work at the same time.

Economic Effect


As a result of the effects of the economic reforms the country's high rate of inflation, to help protect the poor have promised every possible step. Last week he said that the army of food items in poor Chinese and will distribute the rice price half the Egyptians etc.

Egypt's Central Bank said interest rates on Thursday also has added three percentage points. Banks say the move is part of its reform program, Government and non-Government has been to eliminate the black market or currency. Such measures in order to deal with the current challenges the Egyptian economy and would also help in achieving growth.

The value of its currency by the IMF's reduction in Egypt have welcomed the initiative, saying that this decision will foster an environment of competition and it will pave the way for foreign investment in Egypt.

For Egypt, IMF Mission Chief Chris zarves said in a statement that the Central Bank of Egypt, "we liberated the foreign exchange system by adopting flexible exchange rate and are welcomed. The amount of foreign currency will be available in addition to exports, tourism and external competition in Egypt, and foreign investment will help to promote you. "

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