12:40 PM
Wednesday, March 6, 2024
Books-Mohamed Fathi:
Mohamed Al-Atribi, President of the Bank of Egypt, said that the Central Bank raised the interest rate by 6% and the rate now ranged from 27.25-28.25, which prompted the bank to issue a certificate with an interest rate of 30%, 25%, and 20% annually, quarterly, and monthly.
Al-Etribi expected a decrease in inflation, which would reduce interest rates, which is one of the reasons for offering decreasing certificates rather than fixed ones.
He added that with the liberalization of the exchange rate, there was a demand to sell the dollar from external institutions as a result of strong measures taken by the Central Bank, pointing out that there is a movement in selling the dollar, in addition to banks meeting customer demands for factories and companies.
He stressed that these decisions lead to the disappearance of the parallel market for the dollar in the near future and a decrease in inflation in the coming period, pointing out that the new certificates exist until they are entitled to their profits.
He pointed out that a foreign company deposited $25 million in the bank after the Central Bank’s decisions this morning to set the exchange rate according to market mechanisms.
The Central Bank of Egypt announced a 6% all-time increase in interest rates on deposits and lending. The central interest rate rose after the increase to 27.25% for deposits and 28.25% for lending, as it decided to allow the pound’s exchange rate to be determined according to market mechanisms.
The bank said in a statement issued after the extraordinary meeting of the Monetary Policy Committee, that the local economy has recently been affected by the shortage of foreign currency resources, which has led to the emergence of a parallel market for the exchange rate and a slowdown in economic growth.
The external repercussions resulting from global inflationary pressures continued to accumulate at a time when the global economy was exposed to successive shocks. These shocks and their repercussions led to a rise in uncertainty and inflation expectations, which increased inflationary pressures.
The resulting exchange rate movements, in addition to the rise in global prices of basic commodities, along with local supply shocks, led to continued inflationary pressures, which in turn pushed the general inflation rate to record levels. For more (Press here)