In a surprising move, the Central Bank of Egypt (CBE) has decided to let market forces determine the value of the Egyptian pound (EGP). This decision has led to a sharp fall in the value of the EGP against the U.S. dollar.
The CBE also raised its main interest rate by 6 percent. This unexpected decision was made in an attempt to end the black market in currencies and slow inflation, which has reached unprecedented levels in recent months.
Since January 2022, the EGP has lost around 50% of its value against the dollar. The EGP is now trading at around 48.0 pounds per dollar, compared with 30.9 at Tuesday’s close.
