Pulse.com.gh logo
Go


Egyptian Pound Egypt c.bank governor says pumped $22 billion to clear goods piled at ports

Speaking in a pre-recorded interview aired on a local talk show late on Saturday, Amer also said: "There is no currency crisis, there is merely a crisis in managing the foreign exchange market, and we will roll out an alternative plan for managing the market in the next three months."

  • Published: , Refreshed:

Egypt's Central Bank Governor Tarek Amer said on Saturday that devaluing the Egyptian pound had attracted foreign investment worth $500 million in treasury bills and that he had pumped $22 billion into the banking system to clear goods piled at ports.

Speaking in a pre-recorded interview aired on a local talk show late on Saturday, Amer also said: "There is no currency crisis, there is merely a crisis in managing the foreign exchange market, and we will roll out an alternative plan for managing the market in the next three months."

"The decision wasn't a devaluation, it was correcting the situation and we had planned for it in advance. Its advantages will outweigh its disadvantages," he added.

Amer said Egypt would pay back a $1 billion debt owed to Qatar in July and also $800 million to Paris Club countries.

He said dollar-denominated "Belady" certificates offered by the three largest state-owned banks in recent weeks to Egyptians abroad in a bid to persuade them to invest their dollar savings in their home country had seen a very low turnout.

Amer has moved aggressively in recent weeks to bring dollars into a banking system starved of foreign currency and slow the rapid fall of the Egyptian pound on the black market.

He surprised markets this month by removing dollar deposit and withdrawal caps, devaluing the currency by 13 percent in a single day, declaring a more flexible exchange rate and injecting hundreds of millions of dollars despite critically low reserves.

Egypt, which relies heavily on imports, has been facing a dollar shortage since a popular uprising in 2011 drove away tourists and foreign investors, both major sources of hard currency.

The central bank had been keeping the pound artificially strong through regular auctions three times a week. Its reserves more than halved to $16.5 billion in February from around $36 billion in 2011.

 

Credit: Reuters

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 Number 12 Panic withdrawals hit savings & loans company following...bullet
2 Menzgold Ghana Don't deposit money with Menzgold – BoG cautions public...bullet
3 Investment banks in Ghana Top 5 investment banks in Ghana and why...bullet
4 Donor Support World Bank injects $60m into Ghana’s energy, tourism...bullet
5 Salaries In 2018 Here are the dates public workers will be paid...bullet
6 Tax Policy Government not planning to increase VAT, MP allays...bullet
7 Education Top 5 private high schools in Ghana according to WAECbullet
8 Menzgold Ghana Investment company closes down its Gold...bullet
9 Economy of Ghana Gov’t to increase taxes in mid-year budgetbullet
10 Nana Appiah Mensah Zylofon boss to create one million...bullet

Top Videos

1 Money Alert Meet Africa's richest womanbullet
2 Support Finance minister buys Kantanka carbullet
3 Forbes 2018 Africa's billionaires rich listbullet
4 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
5 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
6 Plane Crash Starbow suspends operations following plane crashbullet
7 New Phone Nokia’s MWC 2018 Event in Under 10 Minutesbullet
8 Tech 6 reasons you should buy an iPhone SE instead of any...bullet
9 Bozoma Saint John 10 quotes from Uber top official,...bullet

Business