The Egyptian pound hit its lowest level ever, reaching 19.54 pounds against the dollar, amid increased demand for hard currency and the government’s delay in concluding a new financing agreement with the International Monetary Fund (IMF), according to data from the Central Bank of Egypt (CBE).
In December 2016, the Egyptian pound reached its lowest against the dollar, registering 19.52.
Egypt’s local currency value has dropped by about 25 percent since March when the central bank allowed the exchange rate to move for the first time since 2016 while raising interest rates by about 300 basis points in an attempt to absorb the inflationary pressures caused mainly by the Russo-Ukrainian war and global supply chain turmoil.
Last Thursday, CBE‘s Monetary Policy Committee decided to keep key interest rates unchanged. As a result, the overnight deposit and lending rates, as well as the main operation rate, were kept at 11.25 percent, 12.25 percent, and 11.75 percent, respectively. The discount rate was also kept unchanged at 11.75 percent.
