(3 Minutes Read)
The pound is currently trading in the parallel market at around EGP 71 per dollar. The international depositary receipts of the Commercial International Bank and Edita Food Industries indicate a rate of about EGP 80 per dollar. The official market rate is EGP 30.9 and has been unchanged for about a year.
The Egyptian government has reached a tentative deal with the IMF that will be announced contingent on a devaluation of the Egyptian pound. It is reported quoting government sources that the two parties agreed to adopt a managed float system, rather than a full-fledged flotation of the Egyptian pound.
The pound is currently trading in the parallel market at around EGP 71 per dollar. The international depositary receipts of the Commercial International Bank and Edita Food Industries indicate a rate of about EGP 80 per dollar. The official market rate is EGP 30.9 and has been unchanged for about a year.
The exchange rate adjustment could happen within hours or days and an agreement with the IMF to expand the existing extended fund facility program would be announced next week if it is implemented. Egypt has an extended fund facility agreement with the IMF worth US$3 billion. Only a first installment of no more than US$350 million was disbursed.
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The IMF made the disbursement of funds conditional on several reforms including the exchange rate flexibility and the progress on the divestment program.
