Egyptian pound plunges 55% to match black market dollar

Egyptian pound plunges 55% to match black market dollar

The Egyptian pound plunged by 55 percent on Wednesday to a record official low of 48 against the US dollar, bringing it almost in line with the parallel market rate.  The Egyptian central bank (CBE) said in a statement that it planned to allow the exchange rate to be determined by market forces. At 2pm […]

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The Egyptian pound plunged by 55 percent on Wednesday to a record official low of 48 against the US dollar, bringing it almost in line with the parallel market rate. 

The Egyptian central bank (CBE) said in a statement that it planned to allow the exchange rate to be determined by market forces.

At 2pm UTC on Wednesday the parallel market rate stood at $1/EGP52.4.

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The fall comes after months of speculation as Egypt attempted to defend the previous pound/dollar rate of around $1/EGP30.9, despite a pervasive foreign currency crisis and a parallel dollar rate that briefly topped $1/EGP70 at the start of last month. 

The decision to let the exchange rate of the Egyptian pound fall has increased optimism that a more