Will the pound float again?

Some news spread about the possibility of floating the pound again, which prompted the Central Bank to clarify the matter due to the widespread fear among citizens of the possibility of this happening.

Float pound

The Central Bank announced that it was approved on October 27, 2022, to limit the mechanism for determining the exchange rate of the value of the Egyptian pound against other foreign currencies by the forces of supply and demand within the framework of a flexible exchange rate system.

No float for the pound

This means that there is no possibility for the pound to float again, as the exchange rate is already subject to the forces of supply and demand, and therefore it is now controlling the price in the exchange market, Flexibility in the exchange rate means that the pound is subject to supply and demand mechanisms, up and down, until a point of stability is reached.

As is the case for all global currencies followed by this mechanism, which would protect the economy against speculation and various shocks.

From here International financial institutions praised the central bank’s professional management of the monetary policy file, and its ability to contribute to preserving the gains of the economic reform program, and limiting the consequences of global crises on Egyptian market.

Implementation of the economic reform program

As a result of the Central Bank's management method, the international financial community has renewed its confidence in the Egyptian economy in general, and the management of monetary policy in particular, through the approval of the International Monetary Fund to cooperate with Egypt in implementing the targeted economic reform program during the current stage.

The Central Bank works to professionally manage the monetary policy file according to the changes that occur in the arena, while taking precautionary measures and proactively through scenarios that are developed for all possibilities that are expected to occur.

5.3 billion dollars to meet the needs of the market

The Central Bank’s policy revealed that more than $5.3 billion has been procured to meet the market’s needs for foreign currency, during a month and a half, which is the period from the beginning of November to mid-December this year, as the Central Bank’s policies were able to start treating the crisis of port congestion with goods, which confirms the ability of monetary policy To find appropriate solutions to market requirements in the short and medium term.