CAIRO, Dec 6 (NNN-MENA) – The Egyptian pound retreated to 50.04 against the U.S. dollar, yesterday, breaching the threshold of 50 for the first time, since the Central Bank of Egypt (CBE) last devalued the pound in March.
The fluctuation comes, as the country pledges to enact a flexible exchange rate, according to CBE.
During a televised press conference last Saturday, Egyptian Prime Minister, Mostafa Madbouly, emphasised that, maintaining a flexible exchange rate against the dollar would boost the economy’s sustainability, investor confidence, and the private sector.
He explained that, a fixed exchange rate does not demonstrate stability, adding that, the fixation of the rate for long periods could lead to sharp and sudden devaluations of 30 or 40 percent, when problems occur.
Egypt adopted a flexible exchange rate in March, leading to fluctuations in the value of the dollar ranging from 47 to 49 pounds, Madbouly said, adding, similar fluctuations are expected in the coming months based on the demand for the dollar.
The country’s central bank devalued local currency on March 6, increasing the dollar exchange rate from 30.9 pounds to 49.56 pounds, to help secure an expanded 8-billion-U.S. dollar deal with the International Monetary Fund.– NNN-MENA
