Reports have emerged that the dollar exchange continues to slip on the black market, allegedly reaching a whopping 18 EGP.
How low can Egypt’s currency go? Well, according to reports emerging on Sunday, US dollars are being sold at a record low of 18 EGP on the black market.
The foreign currency shortage continues to plague Egypt as banks refuse to budge beyond the 8.88 EGP/USD rate. Exasperating the crisis are unsubstantiated rumours from local media outlets alleging that even the Central Bank of Egypt is purchasing dollars from the black market, which only widened the massive gap that already exists between the official banking rate and the black market.
Egypt’s current foreign reserve stands at $19.5 billion, and it’s widely expected by financial experts that Egyptian banks will have to float the pound to close the gap that exists. However, the decision to do so continues to be delayed as many expect the government is waiting in hopes of acquiring a $12.8 billion loan from the IMF before an official devaluation of the pound.