Kadmar Circular No. 87/2016
Kadmar Circular No. 87/2016
kadmar Posted on Thursday, November 3, 2016
Regarding Central Bank of Egypt Decision to Float The Egyptian Pound
Against The Foreign Currency U.S. Dollar

On Thursday 3rd November 2016, Central Bank of Egypt (CBE) decided to freely float the Egyptian pound against the U.S. dollar and raising the key interest rates by 300 basis points. after the decision to float the pound, the Egyptian Exchange earns 23.5 billion pounds in 10 minutes .

The Central Bank of Egypt (CBE) has temporarily devalued the Egyptian currency by 48 % to register the U.S. dollar to EGP 13 until it holds an exceptional forex auction at 1.00 CLT to leave the price for "the supply-and-demand mechanism."

According to the statement, the Central Bank of Egypt (CBE) allows local banks to move within a 10-percent margin above and below the above-mentioned exchange rate until the auction.

The pound has held steady against the U.S. dollar at 8.78 at the Central Bank of Egypt's (CBE) weekly auctions since a 13.5 percent devaluation in March.

The central bank also said in a statement that it would abolish the priority list for imports and that banks would be allowed to operate until 9 p.m. every day, including weekends, for foreign exchange transactions and transfers only.

We believe that this action will help in increasing Egypt import, boost tourism industry, and will accelerate the process of Egypt application to import $ 12B loan and will mitigate black market.

Pls be guided accy.

Best regards
Kadmar Shipping Co.