Egypt intends to abandon the peg of the national currency to the dollar
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The Central Bank of Egypt is developing an index of the Egyptian pound. It is needed to abandon the peg of the national currency to the dollar.
The head of the Central Bank, Hassan Abdallah, noted that the currencies of oil-producing countries, to which Egypt does not belong, are mainly pegged to the dollar. The US is also not Egypt’s main partner. “Therefore, regardless of the dollar exchange rate, we began to work on creating an Egyptian pound index – it will take into account several currencies, possibly gold and other metals,” said Mr. Abdallah (quoted by RIA Novosti).
The Egyptian pound has fallen more than 27% against the dollar since March. The dollar exchange rate is 19.72 pounds. At the same time, the head of the Central Bank noted that the national currency strengthened against the Turkish lira, the British pound and the euro, but “people do not see this.”
Egyptian authorities have previously linked problems in the economy with the crisis around Ukraine. So, in January-August, about $22 billion of investments were withdrawn from the country, which made it difficult to service the debt. In the spring, Egypt asked the International Monetary Fund to consult on a new support program.
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