Egyptian pound drops 62% against US dollar after flotation decision

Ahram Online , Wednesday 6 Mar 2024

The Egyptian pound experienced a significant drop on Wednesday, declining by 62 percent to approximately EGP 50.1 against the US dollar and EGP 54.5 against the euro.

dollar
Egyptian pound and US dollar banknotes. Photo: AFP

 

This decline occurred as the Central Bank of Egypt (CBE) implemented an unprecedented six percent increase in interest rates, while also allowing the market to determine the exchange rate.

These actions are part of the country's efforts to control inflation.

Based on the average exchange rates provided by major banks in Egypt, the US dollar exchange rate rose to EGP 50.1, compared to EGP 30.9 on Tuesday.

In Banque Misr, the dollar rate stood at EGP 50 for buying and EGP 51 for selling; the euro rate reached EGP 54.2 for buying and EGP 54.5 for selling.

In the Commercial International Bank (CIB), the dollar rate recorded EGP 50.3 for buying and EGP 50.4 for selling; the euro rate recorded EGP 54.5 for buying and EGP 54.7 for selling.

​This is the fourth devaluation of the Egyptian pound since early 2022.

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