Ramses added in a call with “”, on Thursday, noting that since the pound broke the 50-pound barrier and dropped to less than 48 pounds, prices have not decreased despite the government talking about reduced inflation rates. These rates have decreased on paper, and there are government intentions to raise fuel prices and other daily life and service items.
She continued: “One of the factors of fluctuation is also the flows due to the absence of a parallel market, tourism, and the resumption of work in the Suez Canal after the peace agreement in Gaza and the reconstruction plan, which is expected to have Egypt play a major role. This will have an economic impact on Egypt.”
Ramses explained, “Despite all of the above, international entities see that the pound is overvalued, and by the end of this year, it could reach 51 pounds per dollar, and it might reach 54 pounds per dollar by the end of 2026. The reason for this increase is Egypt’s external obligations to pay off debts and interest, and the IMF has stopped granting Egypt the remaining loan installments because it has not met its demands, including the state’s withdrawal from many activities and projects and listing them on the stock exchange, which has been postponed indefinitely.”
Ramses questioned, “It is unbelievable that the dollar is worth 48 pounds in the evening and 47.60 pounds in the morning per dollar. It is very clear that this flotation is being managed.” The Egyptian pound has seen significant fluctuations over the past weeks after surpassing the 50-pound per dollar mark, then retreating and breaking the 48-pound barrier. Notably, the fluctuation in the dollar exchange rate comes with large increases and decreases, even though the Egyptian government is adopting flexibility in the pound’s exchange rate against other currencies, making the ups and downs not surprising unless they are at high rates.
