Nearly $1 Billion Invested In Egypt’s Forex Market: The Local Currency Is Now The World’s Worst Performing Currency In 2023 – Bitcoin News

The Egyptian central bank recently claimed that its decision to devalue the local currency has been vindicated by the return of foreign investors to the country’s foreign market, where they reportedly invested $925 million in just three days. The surge in sales of Egyptian T-bills maturing in a year or less is said to similarly vindicate the central bank’s devaluation of the pound.

Increase in sales of Treasury bills

Foreign investors reportedly moved $925 million into Egypt’s foreign exchange market just days after the local currency’s exchange rate against hard currencies fell sharply. In addition, the country’s foreign exchange market has also received inputs from so-called local sources, as well as Egyptians working abroad.

According to a Reuters report According to the January 16 statement from the Central Bank of Egypt (CBE), just three days after the devaluation of the Egyptian pound on January 11, Egyptian banks were able to meet importers’ foreign exchange requests worth $2 billion. in your arabic language statementthe CBE reportedly said that the return of foreign investors, also evidenced by the increased sale of Egyptian Treasury bonds, vindicates its decision to switch from a fixed to a flexible exchange rate regime.

As Bitcoin.com News recently reported, the Egyptian pound briefly fell to a record low of 32.14 units of the local currency for every dollar. By allowing the pound to depreciate by more than 16% in just under a year, the CBE fulfilled a key demand from the International Monetary Fund. Satisfying this demand allowed the IMF to approve Egypt’s $3 billion loan package.

Meanwhile, a Bloomberg report said Egypt’s net international reserves had risen despite a $2.5 billion debt payment that was made at the end of 2022. To help Egyptians counter the effects of rising inflation, local banks are now selling currency derivatives, the CBE said.

Since falling to a record low of 32.14 to the dollar, the Egyptian pound has rallied marginally and, at the time of writing, is trading around 29.57 to the dollar on January 17 (16:32 EST). .

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Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer in Zimbabwe. He has written extensively about the economic problems of some African countries and how digital currencies can provide an escape route for Africans.