FEI commends CBE's decision to allow exchange rate determination based on market mechanisms

CAIRO - 6 March 2024: The Federation of Egyptian Industries (FEI) welcomed the significant step taken by the Central Bank's Monetary Policies Committee to allow the exchange rate to be determined based on market mechanisms. 

 

In a significant development, Egypt devalued its currency on Wednesday, resulting in the Egyptian pound's value decreasing to over 50 per dollar by midday, in contrast to the maintained rate of approximately 30.9 over the past year.

 

The CBE also raised interest rates by 600 basis points (6 percent), reaching 27.25 percent.

 

The FEI emphasized that this move is crucial for monetary reforms aimed at achieving economic stability in the market. 

 

It is part of necessary economic reforms that will have positive effects on market stability, increased investments, and the restoration of production cycles to their natural rates. 

 

It expressed appreciation for the political leadership's directives that led to this bold and crucial decision amid the current economic challenges.