Egypt Central Bank: Pound Slips to New Low against Dollar

Egypt Central Bank: Pound Slips to New Low against Dollar

The Egyptian pound dipped to a new low Monday of just over 30 for $1, as the country continues to battle surging inflation and foreign currency shortages, authorities said.

The landmark slide in Egypt's Central Bank selling rate is the latest in a series of tumbles following the country's $3 billion International Monetary Fund bail-out package ratified in mid-December. The IMF deal was agreed upon in exchange for Egypt implementing a number of economic reforms, including a shift to a flexible exchange rate. The deal allows for a further $14 billion in possible financing for Egypt.

Many banks within Egypt were trading at 30 Egyptian pounds for $1 earlier this month.

The Egyptian economy has been hit hard by years of government austerity, the coronavirus pandemic and the fallout from the war in Ukraine. Egypt is the world’s largest wheat importer, with most of its imports having traditionally come from eastern Europe. Since January 2022, the Egyptian pound has lost around 50% of its value against the dollar.

In recent months, the country has been beset by surging inflation and price hikes. According to monthly statistics published by the state-run Central Agency for Mobilization and Statistics earlier this month, annual inflation stood at 21.9%