Wednesday 07 February 2024
Written by Manal Al-Masry:
The price of the dollar in the parallel market – the black market for speculation on the currency – returned to a sudden rise during yesterday’s and today’s transactions, after it fell sharply during transactions at the beginning of this week amid cautious anticipation among buyers and sellers, according to what one of the observers spoke to, Masrawy said. “.
According to the observer, the price of the dollar in the parallel market rose to about 59 pounds, compared to about 54 and 55 pounds during transactions last Sunday and Monday, an increase of about 4 and 5 pounds as the trading movement stopped buying and selling, in anticipation of the Central Bank starting to reduce the pound against the dollar.
The parallel market began to compensate for part of its loss after it received huge losses last Sunday after the dollar lost about 19 pounds, declining from about 73 pounds during last week’s trading to about 54 and 55 pounds, after the Central Bank raised the interest rate by 2% in its meeting on Last Thursday, which was explained by the imminent return to exchange rate flexibility.
The price of the dollar in the parallel market is exaggerated and unrealistic, and is due to pricing chaos among major manipulators due to the foreign exchange pressures facing banks and their inability to meet the demand for the currency for all customers during the last two years due to the negative consequences of the Russian-Ukrainian war, according to what bankers and analysts said. Masrawy told them earlier.
The fears of speculators in the parallel market were reinforced at the beginning of the week by the International Monetary Fund’s announcement on Friday that an agreement would soon be reached with Egypt regarding the postponed first and second reviews of the Egyptian economic reform program, which it supports with a value of $3 billion.
Speculators in the parallel market explained the Central Bank’s raising of the interest rate and the announcement of an imminent agreement between the Fund and Egypt, along with providing additional financing to Egypt that has not yet been determined for the success of the reform program, by Egypt’s imminent return to exchange rate flexibility with the entry of foreign exchange flows, leading to an increase in the supply of the dollar.
The fears of black market currency speculators increased after news circulated – unconfirmed officially – about the existence of negotiations between the government, Emirati investors and others to buy land in the city of Ras El Hekma overlooking the Mediterranean Sea with investments exceeding 22 billion dollars.
The European Union also announced, during its summit in Brussels last week, the provision of additional financial allocations to Egypt within the framework of the midterm review of the European budget for the period (2021-2027), and the allocation of financial and economic support included in this decision, according to a previous statement from the Ministry of Foreign Affairs.
The post first appeared on www.masrawy.com