Egypt Daily News – Prime Minister Mostafa Madbouli said today, Saturday, that the exchange rate of the pound may fluctuate in the range of 5 percent in the coming period, according to the demand for the dollar.
Madbouly’s speech, which came in a press conference today, reiterated Egypt’s commitment to a flexible currency exchange rate, saying, “We will not repeat previous mistakes.”
“We assumed that fixing the exchange rate expresses the strength and solidity of the state and that it is not right to leave the currency to move flexibly, so the result was that we would remain stuck to (the currency price) for a certain period of time and a problem would occur and we would be forced to do a float reaching 30 and 40 percent of the currency price,” according to what Madbouli said.
The Egyptian Prime Minister explained that the dollar exchange rate against the pound has moved between 4 or 5 percent since the currency was floated last March, which he considered “natural and logical,” and that this movement is likely to continue at the same rates in the coming period, according to the demand for the currency.
Last Thursday, Madbouli said that Egypt is committed to a flexible exchange rate for the currency, and that it will not restrict the movement of the dollar.
According to the Cabinet statement, regarding Madbouli’s statements last Thursday, he said: “There is still concern and talk that the value of the dollar has increased and whether it is about to exceed 50 pounds per dollar. There is an agreement that there is no restriction on the movement of the dollar, and that we are committed to a “Flexible range”
However seeing what’s happening in the whole world, especially with the American elections and their results, all of this led to an increase in the strength of the dollar compared to all currencies around the world, including the euro, the British pound, and all other currencies, and the Egyptian pound is part of an existing global system, so it is natural for this to happen.
Madbouli added: “We are moving within the framework of a free market that is subject to the rules of supply and demand, and the most important thing is that we do not have any delays, as there is movement, supply and demand, and the needs of industry and trade requirements that are met.”
