#price #dollar #decline #weeks #trading
03:19 PM Thursday, April 25, 2024
Written by Manal Al-Masry:
The price of the dollar continued to decline during this week’s trading by about 45 piasters compared to the end of last week’s trading, falling below the level of 48 pounds per dollar, driven by the entry of the second batch from the International Monetary Fund.
Last Saturday, Egypt received $820 million, the value of the second installment of the International Monetary Fund loan, according to what Al-Sharq published, citing government officials.
Two officials in the Department of International Transactions and the Treasury, in two private banks, said that Egypt’s receipt of a new tranche from the International Monetary Fund is behind the dollar recording losses against the pound as a result of the increase in the money supply of the currency.
Days after Egypt’s decision to liberalize the exchange rate, the International Monetary Fund announced last month the completion of the postponed first and second reviews of the economic reform program, according to which it would receive $820 million.
According to the free exchange rate policy, the dollar moves up and down against the pound according to the increase in the supply of foreign exchange compared to the volume of demand.
Last March, the Central Bank announced a return to liberalizing the exchange rate, aiming to eliminate the dominance of the black market for currency trade and exchange rate pluralism.
Egypt’s signing with the UAE of the largest investment agreement to develop the city of Ras El Hekma, worth $35 billion, contributed to the central bank’s return to liberalizing the exchange rate and closing the financing gap.
This helped in the International Monetary Fund announcing an increase in the value of the loan provided to Egypt from 3 to 8 billion dollars, and Egypt obtaining support from the European Union of about 8 billion dollars, in addition to the World Bank Group allocating 6 billion dollars.
Dr. Mohamed Maait, Minister of Finance, said in press statements earlier that Egypt will receive $20 billion in the second batch of Ras Al-Hikma investments at the beginning of next May, after receiving $15 billion last February and March.
Treasury officials expected the price of the dollar to continue to decline against the pound with the entry of development flows into the city of Ras El Hekma.
