Egyptian Central Bank Egyptian Central Bank
Written by  Feb 04, 2018 - 155 Views

The effect of the liberalization of the currency exchange rate on Egypt's foreign exchange reserves after 14 months

Egyptian Economy, Currency Exchange Rates in Egypt, Egypt's Reserves: When the Egyptian government decided to float the pound about 14 months ago in order to raise the reserves of foreign currency, some economists described this decision as a serious economic mistake, following the insane rise of the dollar in Egypt, where it reached about 20 pounds in the market Black.

But after a short time the currency market in Egypt started to adjust itself and the price of the dollar began to fall, and Egypt's reserve of hard currency began to rise.

Egypt's foreign reserves rose by about $ 18 billion in 14 months to $ 37 billion at the end of December 2017, compared to $ 19 billion at the end of October 2016, the reserve balance before the historic decision on Thursday, November 3, 2016, , Or the so-called "floating of the pound," according to the Central Bank of Egypt.

The performance of the Egyptian economy has gradually changed for the better. The black market has ended and the inflow of more than $ 80 billion into the Egyptian economy has led the international investment community to examine investment opportunities in several sectors of the Egyptian economy. USD since the exchange rate has been released so far.

Egypt's foreign reserves consist of a basket of major international currencies, namely the US dollar, the single euro currency, the pound sterling, the Japanese yen and the Chinese yuan.

Suez Canal revenues, foreign direct investment, tourism and international loans are the main backers of foreign reserves. Egypt's foreign reserves rose to 37 billion dollars, an unprecedented level, as a result of improved currency flows Which is the result of the Egyptian exports abroad and remittances of Egyptians working abroad, which recorded about 24 billion dollars in a year.

Banks 'foreign exchange reserves as a result of foreign exchange concessions - selling from customers to banks - rose to about $ 58 billion, ending the crisis of currency availability from Egypt. The waiting lists for the conversion of large companies' profits abroad are eliminated, boosting confidence in the economy. Who suffered years of declining foreign exchange flows.

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