Nearly $1 billion pumped into Egypt’s forex market – local currency now world’s worst performing currency in 2023
Comparing the exchange rate of the local currency to the hard currency, we find that foreign investors reportedly invested $925 million in the Egyptian forex market just days after the fall. Additionally, the country’s foreign exchange market has received inflows from perceived local sources as well as from Egyptians working abroad.
The Central Bank of Egypt makes a statement on January 16, and according to it, a Reuters report is published, in which it is told that only 3 days after the devaluation of the Egyptian pound on January 11, the bank will pay importers for $ 2 billion in foreign currency. was able to meet the request of In an Arabic-language statement, the central bank reportedly says that the withdrawal of foreign investors, which is clearly visible from the increase in sales of Egyptian treasury bills, is part of its efforts to switch from a fixed to a flexible exchange rate regime. justifies the decision. As reported and reported by Bitcoin News, the Egyptian pound fell to an all-time low of 32.14 units of the local currency for every dollar, sending the pound up more than 16% in less than 1 year. By allowing depreciation, the Central Bank meets the demand of a major International Monetary Fund. After meeting this demand, the International Monetary Fund approved Egypt’s $3 billion loan package and meanwhile a report in the contact said that the $2.5 billion loan made at the end of 2022 Despite the repayments, Egypt’s net international reserves increase was recorded. Local banks are now reportedly selling currency derivatives to help Egyptians cope with the effects of rising inflation. Certainly the Central Bank further states that the Egyptian pound has recovered marginally after falling to an all-time low of 32.14 per dollar and at the time of writing, it is around trading at 29.57 per dollar.
