Over the weekend, the Egyptian Pound was stable both officially and at the black market.
Egypt depends faces a dollar shortage and pressures to devaluate the pound. This could have an effect on energy and food prices since the country depends on imports rather than on its own production.
The Central Bank of Egypt made quite a stir when it decided to strengthen the pound last November 11 versus the USD.
39.4M USD was sold at a cut-off value of 7.7301 to the greenback for the past days ending on Thursday. The black market price was 8.58 to a dollar on Sunday which was the exchange value since Thursday.
The country’s foreign reserves have declined from 36B to $16B in October. The central bank has been controlling dollars through weekly auctions to the banks which allowed a stable value for the Egyptian pound.
Egypt has been deprived for foreign currency every since 2011 when Hosni Mubarak was ousted from office. Influx of tourists and investors has been very slim since that period.