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بوابة الفجر
Egyptian pound decline persists
Egypt's policy of floating the Egyptian pound since 2024 and adopting a specific timetable for International Monetary Fund loans have been a main reason behind the ongoing gap between the official exchange rate of the dollar in banks and the parallel market rate. Despite improvements in foreign exchange reserves, growth rates, and inflation, the black market remains active due to demand for dollars to finance imports and travel, as well as the potential profit from the price difference. Five devaluation steps of the pound have been implemented according to the program's schedule, aiming to meet IMF conditions. However, these measures have not succeeded in closing the gap or eliminating the black market, as the program focuses on achieving set time milestones rather than establishing a balanced market. Experts confirm that devaluing the currency according to a timetable does not eliminate speculative demand, and the persistence of the black market indicates that official adjustments alone are insufficient to achieve genuine currency stability.
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