Engineer Hisham Kamal, President of the Small and Medium Enterprises Development Association, confirmed that the announcement Egyptian Central Bank Setting the dollar exchange rate according to supply and demand is the strongest decision taken by the bank in the recent period, given its expected consequences on the black market for the dollar.
Hisham Kamal expected, in a statement to Youm7, that the dollar exchange rate would witness gradual declines in the short term, and that the difference between the official price of the dollar and the parallel market would diminish, leading to the complete elimination of the black market.
The Central Bank of Egypt announced this morning that the exchange rate will be determined according to the mechanisms of supply and demand, noting that the local economy has recently been affected by the shortage of foreign currency resources, which has led to the emergence of a parallel market for the exchange rate and a slowdown in economic growth, and the external repercussions resulting from global inflationary pressures have continued. In accumulation, coinciding with the global economy being exposed to successive shocks. These shocks and their repercussions have led to a rise in uncertainty and inflation expectations, which has increased inflationary pressures. The resulting exchange rate movements, in addition to the rise in global prices of basic commodities, along with local supply shocks, led to continued inflationary pressures, which in turn pushed the general inflation rate to record levels.