The Egyptian pound recorded its lowest level against the dollar in about 5 years

The Egyptian pound fell against the US dollar during this week’s trading, bringing the Egyptian pound to its lowest level in nearly five years, after the dollar approached the 19 Egyptian pound barrier. Cairo is witnessing a huge economic crisis, as it faces a shortage of hard currency since the beginning of this year, especially after the Russian invasion of Ukraine, which has resulted in a rise in the prices of Egyptian imports, especially wheat and energy imports.

Egypt, which faces foreign debts of about 157 billion dollars, is seeking to conclude a new agreement with the International Monetary Fund to obtain a new loan that will revive the country’s foreign exchange reserves. In this context, Egyptian President Abdel Fattah El-Sisi said during a summit meeting with German Chancellor Olaf Scholz that he seeks to convey the European officials to convey the Egyptian viewpoint to the officials of the International Monetary Fund and the World Bank to realize the reality in our country to speed up the possibility of obtaining the new loan.

Egyptian economy challenges

Observers believe that the current efforts made by the Egyptian president reflect the difficult economic situation that the government in Cairo is suffering from. As the negotiations between Egypt and the International Monetary Fund lasted more than the previous negotiations, as Egypt had previously obtained a loan estimated at about 8 billion dollars during 2020 to face the burdens of the pandemic.

In previous reports from the International Monetary Fund, it was stated that Egypt is facing a deteriorating economy, which may expose many citizens to difficult economic conditions. Egypt had relied on attracting what is known as hot money to attract huge investments from foreign currencies Where Egypt represented the highest real interest rate, but the matter has changed with the start of the Federal Reserve in the United States in a series of interest rate hikes, which withdrew a lot of those funds from Egypt. At a time when Cairo is obligated to repay several billion dollars of loans and the interests of these loans during the current year.

In terms of trading, the dollar rose against the Egyptian pound during today’s trading, with the dollar recording an average of 18.88 for buying, compared to 18.82 for selling in most Egyptian banks.

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