The Strategist

Egypt to stop pegging national currency to the dollar



10/24/2022 - 09:34



According to Central Bank Governor Hassan Abdullah, Egypt's central bank is creating an index of the Egyptian pound in an effort to end the peg of the national currency to the dollar.



MaxPixel
MaxPixel
The head of the Central Bank, who assumed his position in August, stated that while the bank has an independent policy, it recognizes the necessity for coordination with both the public and private sectors.

He emphasized that Egypt is not on the list of nations that produce oil, but that the majority of those nations' currencies are connected to the US dollar. The bank governor emphasized that "the U.S. is not Egypt's key partner" as well.

Abdullah stated in a speech at the First Egyptian Economic Forum that "we have started working on constructing an index of the Egyptian pound - it will take into consideration multiple currencies, probably gold and other commodities."

"Changing the perception that our currency is tied (to the dollar) is part of our success," Abdullah remarked.

The governor of the central bank emphasized that while the Egyptian pound has declined against the dollar, it has risen against the Turkish lira, the British pound sterling, and the euro, "but people don't notice it."

source: reuters.com

 




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