Egypt floats exchange rate for the first time USD EGP reaches 45

Posted on March 6, 2024   |  

Egypt's central bank (CBE) decided to devalue the Egyptian Pound and introduce a flexible exchange rate system determined by market forces.

The decision was made unexpectedly during a Monetary Policy Committee meeting on March 6.

To ensure a smooth transition, the CBE will maintain its focus on targeting inflation while allowing market forces to determine the exchange rate.

Currently, the currency is trading around EGP 45 per USD.

Alongside the devaluation, the CBE raised interest rates significantly, with overnight deposit, overnight lending, and main operation rates reaching 27.25%, 28.25%, and 27.755%, respectively.

This shift in policy demonstrates the central bank's commitment to stabilizing the economy and addressing inflation risks.