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CBE maintains flexible exchange rate policy: Amer

CBE maintains flexible exchange rate policy: Amer

ArabFinance: The exchange rate policy of the Central Bank of Egypt (CBE) is flexible and profitable to the holder of the Egyptian pound in the medium run, the Middle East News Agency (MENA) reported on May 19th, citing Governor Tarek Amer on the sidelines of the 2022 Arab Banking Conference.

"We have issued the 18% certificates to add value to savings which are the livelihood of many households," Amer noted, adding that the levels of debt have been maintained.

The exchange rate of the Egyptian pound has seen a correction due to the Russian-Ukrainian crisis, hence, the holdings of foreign currencies increased, he noted.

Moreover, Amer remarked that the Egyptian banking sector would be the last to face any problems.

The CBE has preemptive plans to address any international crisis, the CBE's governor said, commenting "we are not confined to reactions".

He elaborated that these plans offered an economic shield against fluctuations, adding that Egypt has not been impacted by the Covid-19 crisis.

Amid the pandemic, the central bank has interfered with foreign currency reserves, settling international obligations, Amer revealed.

It is worth noting that, the international reserve at the CBE rose by around $41 million month-on-month (MoM) at the end of April.

Egypt’s external debt recorded $145.529 billion at the end of Q2 FY 2021/2022, versus $137.420 billion at the end of Q1 FY 2021/2022, the CBE’s data showed.

On March 21st, the CBE raised interest rates by 1%, the first increase since 2017. Subsequently, Egypt’s currency slipped with almost a 16% devaluation against the dollar.

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