Following the new undeclared devaluation of the Egyptian pound, the US dollar hit 26.45 pounds


Wednesday, the Egyptian pound’s exchange rate dropped against the US dollar. That US dollar price was 26.45 pounds, up from 24.75 pounds a day ago. The new devaluation of the pound was accompanied by releasing new one-year investment securities with a 25% gross interest rate.

The new devaluation was predicted last October when the Central Bank of Egypt decreased the pound price from 19 pounds for the US dollar to 23 pounds. The unofficial US dollar rate continued to hike following the devaluation hitting 35 pounds. The gap between the official and the unofficial prices of the US dollar was scathed by the International Monetary Fund, which pointed the finger at the governmental manipulation of the US dollar exchange rate for the crisis of greenback shortage in Egypt.

The Egyptian government began the devaluation of the pound in November 2016, when a deal was concluded with the IMF to finance an economic reform program in Egypt targeting the government deficit and inflation. After a bit of improvement in macroeconomic indices in 2019, the Egyptian government showed minimal resilience to the world economic crisis after the Russian invasion of Ukraine last February.