Economists said that the rise of the Egyptian pound exchange rate against the dollar, with the support of increasing cash flows, raises concerns and fears more than being a source of pride and pride by the Egyptian government.
The price of the dollar fell
The exchange rates of the American dollar decreased against the Egyptian pound during Monday’s transactions in a number of banks operating in Egypt.
The pound recorded the highest rise in 3 years, as the price of the dollar reached 15.61 pounds for purchase and 15.71 pounds for sale in a number of banks, while in other banks it reached 15.58 pounds for purchase and 15.68 pounds for sale.
And that price is the highest for the Egyptian pound after a successive series of staggering declines after the announcement of the liberation of the pound exchange rate, November 2016, where the price of the US dollar ranged before it at 9 pounds, before it almost doubled and reached the limits of 18 pounds.
The majority of the inflows are from debt
The Egyptian economist, Dr. Ahmed Zekrallah, emphasized that “the pound has fallen by more than 100 percent of its value by five years, and therefore the measurement of any improvements in the performance of the pound should be based on the standard of what it was and not on the diminishing standard that has occurred for one or another circumstance recently.”
The economists stressed in statements to “Arabi 21”: that the majority of cash flows are loans (treasury bills and bonds), and not in productive sectors such as agriculture, industry and other vital sectors, which contributes to exacerbating the external debt crisis of Egypt and “inflating the public debt balloon” which It exceeded 6 trillion pounds.
Amid varying opinions of analysts on the reasons for the rise of the Egyptian currency against the American currency and their expectations for the performance of the Egyptian pound during the year 2020, Egyptian media celebrated the pound’s gains and ignored the citizens’ lack of awareness of them.
Egyptians wonder: Why did the prices not drop despite the rise of the pound?
The pioneers of social media in Egypt criticized the stability of prices, especially since the price of the dollar has been declining continuously since the beginning of this year, and experts expect it to decline further.
The Twitter pioneers expressed their dissatisfaction with the stability of the prices of imported goods compared to the immediate rise of the moment when the pound floated, and others asked whether the prices would rise with the rise of the dollar again.
It is noteworthy that the price of the dollar reached its lowest levels of 15.60 pounds for purchase, and the price of 15.70 for sale, according to the central bank, since the liberation of the exchange rate amid the stability of the prices of goods and fuel.
Experts attributed the dollar’s decline to its influx in Egyptian financial portfolios, especially treasury bills and bonds.
According to the central bank’s website, the dollar fell by about three piasters on average, on Monday, during trading.