Madbouli: The Egyptian pound may rise or fall by 5% in the coming period

Madbouli’s speech, which was delivered at today’s press conference, reiterated his commitment Egypt With a flexible exchange rate, he said: “We will not repeat the mistakes of the past.”

“We assumed that fixing the exchange rate expressed the strength and firmness of the state… and that it was wrong to leave the currency to move flexibly… so the result was to remain stuck (currency prices) for a certain period of time… so it would appear problem… so we would be forced to make floats with big numbers that would go up to 30 and 40 percent currency prices,” according to what Madbowli said.

The Egyptian prime minister explained that the dollar-to-pound exchange rate had been moving between 4 or 5 percent since the currency was released last March, which he considered “natural and logical,” and that the movement was likely to continue at the same rates in the coming period, according to demand for currency.

It is important to note that over the past few days, the exchange rate of the Egyptian pound has fallen to its lowest level since the flotation it witnessed last March, reaching levels of approximately 49.8 against the dollar.

Madbouli said last Thursday that Egypt is committed to a flexible exchange rate and will not limit the movement of the dollar.

According to a Cabinet statement, referring to Madbowli’s remarks last Thursday, he said: “There is still concern and talk that the value of the dollar has gone up and are we going to break £50 to the dollar… There is an agreement that there is no cap on movement of the dollar, and that we are committed to the price… Flexible rate, but with what is happening all over the world, especially the US election and its results, all this has led to an increase in the strength of the dollar compared to all currencies around the world, including the euro, the pound sterling and all other currencies. The Egyptian pound is part of the existing global system, so it is natural for this type of movement to occur and therefore we should not worry about a temporary rise in the dollar.

Madbouli added: “We are moving within a free market that is subject to the rules of supply and demand, and the most important thing is that we do not have delays, because there is movement, supply and demand and the needs of industry and commerce are met.”