Recently, the Central Bank of Egypt (CBE) claimed that the decision to devalue the local currency was justified by foreign investors returning to the country’s market, who reportedly infused $925 million in a matter of three days. Furthermore, the sales of Egyptian Treasury bills have also increased.
Inflows From Local Sources
According to Reuters, after the exchange rate of the Egyptian Pound against hard currencies dropped sharply, the foreign exchange market was reopened. In addition, inflows have also been received from “local sources” to the country’s foreign currency market. It is believed that these local sources include Egyptians working abroad.
You can also visit our website at Bitcoin.com News to get the latest news straight to your inbox. According to a January 16 statement from the CBE, the bank fulfilled a critical demand of the International Monetary Fund (IMF) by allowing the Pound to appreciate more than 16% in a little over a year. This enabled the IMF to approve Egypt’s package of $3 billion in loans.
Despite a $2.5 billion debt payment made in the latter part of 2022, net international reserves were up. Bloomberg reported that the Egyptian Pound fell briefly to 32.14 units of local currency per dollar, a record low. As of writing, it is around 29.57 against the dollar on January 17 (16:32 EST). Local banks are now offering currency derivatives to combat rising inflation, according to the CBE.
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