Prime Minister Mostafa Madbouly addressed concerns about the Egyptian pound’s exchange rate during a press conference on Thursday. He assured the public that Egypt is committed to a flexible exchange rate policy and that there will be no restrictions on the movement of the dollar.
Madbouly acknowledged the possibility of future fluctuations in the dollar’s value against the Egyptian pound, citing the strengthening of the US dollar globally following the US presidential election. He emphasized that Egypt’s currency is part of a global system and that fluctuations are a natural occurrence.
The Egyptian pound has been approaching the 50-pound mark to the dollar after maintaining a relatively stable rate of around 48 pounds for several months. On the day of the press conference, the pound reached 49.78 to the dollar, marking the largest decline since the currency devaluation in March.
This downward trend began in late October when the Central Bank of Egypt instructed banks to allocate dollars for documentary credits for non-essential goods, previously requiring prior approval. This increased demand for the US dollar.
Madbouly had previously stated that Egypt does not face a foreign currency shortage, despite recent rumors to the contrary. He attributed this to an increase in remittances from Egyptians abroad and the positive progress of the country’s review with the International Monetary Fund.
The Prime Minister assured Egyptians that the government is focused on ensuring the availability of foreign currency and dismissed rumors suggesting that Egypt had requested an increase in the new disbursement from the IMF to $2 billion.
