Egypt Lowers Fixed Customs Exchange Rate Further to 16 EGP
The newly fixed rate follows signs of the pound's recovery over the last month.
A month after the dollar's customs exchange rate was fixed at 18.5 pounds per dollar in an effort to stabilise trade activities, Egypt's Finance Ministry announced on Wednesday, that the government will now fix it at an even lower rate of 16 pounds per dollar, effective until the end of February.
According to El Arabiya, the decision follows a recent statement by the Finance Minister in which he assured that the fixed customs exchange rate would be reevaluated after the pound rose by 13% against the US Dollar since the turn of the year.
The exchange rate in most Egyptian banks today averages at 16.3 pounds per dollar, down from 18.8 pounds same time last month.
According to the Ministry's statement, exchange rates will be reevaluated on a semi-monthly basis, instead of their original decision to revisit the rate monthly, beginning on March 1st. The shift in policy aims to enable importers to stabilise and predict their transactions while maintaining the currency's flexibility.