Recently, and at an accelerated pace, the Egyptian pound's
value has significantly depreciated against the Dollar. This
decrease happened mainly after the Central Bank of Egypt announced
the liberalization of the exchange rate of the Egyptian pound
against the Dollar, where the CBE allowed banks operating in Egypt
to determine the exchange rate through the interbank mechanism; a
matter which will reflect the value of the EGP against other
foreign currencies, leaving the forces of supply and demand to
determine the value of the EGP.
In order to prevent the possibility of inflation; CBE raised the
rate of interest by 200 points (2%), whereby the deposit and
lending rates became 13.75% and 14.25 % respectively.
