Egypt denies allegations about pound exchange rate, dollar shortage – Egypt Today

Egypt denies allegations about pound exchange rate, dollar shortage – Egypt Today

CAIRO - 13 December 2022: Egypt’s Cabinet denied allegations and claims that are being promoted regarding the exchange rate of the pound and the allegation of a shortage of dollars inside the country.

It stated in a recent report that Egypt has recently adopted a flexible exchange rate policy, describing it as the most appropriate one in the case of open economies that adopt an independent monetary policy.

The report said that this policy contributes to increasing the level of exports due to their increased competitiveness and reducing the attractiveness of imports, due to its high prices, especially when production structures are flexible.

“In conjunction with the implementation of this policy, the government adopted many measures aimed at increasing the levels of agricultural and industrial production,” the report noted, elaborating that those measure aim to reduce the levels of vulnerability of the Egyptian citizen from the impact of price hikes resulting from the liberalization of the exchange rate, which has proven to be very successful in increasing production levels of some agricultural and industrial commodities recently, and in increasing the supply rates of the main agricultural crops, especially wheat.

The report indicated that this flexible exchange rate policy is one of the pillars supporting