The Federation of Chambers of Commerce in Egypt revealed that the black exchange market was completely paralyzed in late Thursday evening and Friday morning transactions.
According to a statement, the Secretary-General of the Federation of Chambers of Commerce in Egypt, Alaa Ezz, indicated that the recent movement of Ldollar exchange rate In the official market, it caused confusion in the parallel market, especially with the narrowing of the price gap between the dollar exchange rate in the official and parallel markets.
Since March of last year, the Central Bank of Egypt has been moving vigorously in the file of controlling the exchange market, and within this framework it announced a long list of measures that included reducing the price of the Egyptian currency against the US dollar by 73%, as the exchange rate of the green American paper rose from the level of 15.75 pounds in last March to about 27.25 pounds at the present time.
The Federation of Chambers of Commerce indicated that the black exchange market completely stopped working after the collapse of the demand for hard currency by the private sector, due to the successive releases made by the government and banks during the last period, which exceeded $6.8 billion, which coincided with the increase in net cash reserves by $470. million dollars in December.
He also pointed out that the National Bank and Banque Misr offered certificates with an unprecedented annual return (25%), which attracted those seeking a safe store of value instead of speculating in dollars, which prompted those who bought dollars from the black market for the purpose of speculation to get rid of them after achieving losses due to the decline in the market price. Black by about 10 pounds in a week.
He pointed out that with the opening of a large number of branches of Banque Misr and the National Bank during the holidays to issue the 25% certificates, it is expected that those who speculated on the speed of converting the dollar into pounds to buy the certificates during the vacation at the closing price Thursday at the level of 27.16 pounds per dollar, expecting the price to drop to Its previous level after the bank holidays next Monday and incur additional losses.
The Secretary-General of the Federation of Chambers of Commerce in Egypt stressed that the integration between monetary, financial and commercial policies, and the Central Bank’s use of innovative mechanisms to reduce inflation, and the successive releases of production requirements and commodities, will have clear effects on price stability in the coming short period, which coincides with many initiatives. government by the Ministry of Supply and Internal Trade, the Ministry of Trade and Industry and the Ministry of Agriculture, with the Federation of Chambers of Commerce and the Federation of Industries to provide low-cost commodities in the transitional phase.