The Monetary Policy Committee of the Central Bank of Egypt (CBE) decided on Wednesday to allow the exchange rate to be determined according to market mechanisms. The CBE is also committed to continuing its efforts to move towards flexible inflation, it said, by continuing to target inflation as a nominal anchor for monetary policy while allowing the exchange rate to be determined according to market mechanisms. “Unifying the exchange rate is a very important measure, as it contributes to eliminating the accumulation of foreign currency demand following the closure of the gap between the official and parallel market exchange rates, the committee explained. The CBE on Wednesday raised interest rates by 600 basis points, equivalent to six percent, to reach 27.25 percent. and what the restrictive policy requires of raising key interest rates to bring real interest rates to positive levels.

Source: Egypt Independent March 06, 2024 11:54 UTC