The Egyptian pound loses a third of its value in one day

The Egyptian pound lost about a third of its value against the US dollar, on Wednesday, with the Central Bank’s decision to raise interest rates by 6 percent, as the price of the dollar in Egyptian banks reached about 47 pounds.

The exchange rate of the dollar in the National Bank of Egypt reached about 46 pounds, and in the Banque Misr it reached more than 45 pounds, and that value increased in private banks, reaching in some of them more than 46 pounds, according to the Middle East News Agency.

Local newspapers reported that the price of the dollar in some banks reached more than 48 pounds.

This rise came after the price of the dollar stabilized in banks during the recent period at approximately 31 pounds.

The Central Bank of Egypt is scheduled to hold a press conference later on Wednesday, with the aim of explaining its recent decisions regarding the interest rate and the decline in the value of the pound.

For its part, Cairo News Channel quoted a source it described as high-level, saying that the signing of the “new financing agreement between the Egyptian government and the International Monetary Fund is expected to take place within the next few hours.”

Following the decision of the Central Bank of Egypt, the head of the “Bank of Egypt” told the local “Extra News” channel, on Wednesday, that the bank will issue certificates for a period of 3 years with a decreasing interest of 30 percent for the first year, 25 percent for the second year, and 20 percent for the third.

State television also reported that the Central Bank directed the opening of the limits of credit cards in hard currency, after placing difficult restrictions on dealing with these cards during the past months.

On Wednesday, the Central Bank announced an increase in interest rates by 600 basis points, in an attempt to curb inflation and as part of preparations to “implement the reform program measures,” at a time when the final touches are being put on an additional financing package from the International Monetary Fund.

The Monetary Policy Committee of the Central Bank of Egypt issued a statement in which it confirmed that “the overnight deposit and lending interest rates and the Central Bank’s main operation rate were raised by 600 basis points, to reach 27.25%, 28.25% and 27.75%, respectively.” The credit and discount rates were also raised by 600 basis points to reach 27.75%.

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