Egypt Pound Black Market Experiences Widespread Volatility

The Egypt Pound black market has been experiencing widespread volatility, with prices fluctuating wildly. This is largely due to the country's economic instability, which has led to a significant shortage of US dollars.

In some cases, the black market rate has been as much as 30% higher than the official rate, making it a lucrative business for those who can get their hands on foreign currency.

The Egyptian pound has seen significant fluctuations on the black market, with prices varying depending on the source. Traders selling the pound on the black market have reported prices ranging from 11 to 11.15 pounds to the dollar.

Central bank officials have denied plans to further devalue the pound, despite rumors circulating on the market. However, some analysts believe a deal with the International Monetary Fund could bring in new sources of funding and boost investor confidence.

The pound's value has been affected by speculation and rumors, with some traders selling it at a level as weak as 11.50 against the dollar. This is a significant drop from the official rate of 8.88 pounds to the dollar.

The Egyptian pound has been experiencing a downward trend on the black market, with traders selling it for between 11 and 11.15 Egyptian pounds to the dollar.

This is a significant drop from its official value of 8.88 pounds to the dollar. Newspaper headlines have reported the pound falling as low as 11.50 against the dollar on some days.

Rumors have been circulating that the central bank may devalue the pound further, but experts say this move has a low probability. Mohamed Abu Basha from EFG-Hermes bank thinks the country needs to attract sustainable foreign exchange income.

Foreign currency has been scarce for importers, leading authorities to crack down on black market dealers. This has only added to the strain on the underperforming economy.

The last official devaluation of the pound was in mid-March, when it was lowered from 7.73 to the dollar.

The Egyptian pound has taken a significant hit, plummeting 55% to a record low of 48 against the US dollar. This drastic change is almost in line with the parallel market rate of $1/EGP52.4.

The central bank has decided to let the exchange rate be determined by market forces, a move that's increased optimism about a potential IMF package. This package could be worth between $8 billion and $10 billion.

Egypt's central bank raised interest rates by 600 basis points to a record 27.25 percent. This is a crucial step towards unity of exchange rates.

The IMF has long demanded a more flexible exchange rate, and this move seems to be a step in the right direction. Capital Economics welcomes the devaluation, calling it a positive step for Egypt on the path out of its current crisis.

Egypt's international bonds have soared after the announcements, with the 2047 bond registering the biggest gains. The bond spread of US treasury yields narrowed to 529, the lowest level since June 2021.

Here are the key events that led to the pound's devaluation:

The devaluation of the pound could pave the way for an IMF deal within hours.

The Egyptian pound has shown signs of strengthening on the black market, with prices reaching £E15 on November 3rd against the dollar. This is a significant improvement from the highs of £E18.4 on November 1st.

Black-market traders have been buying dollars at £E17.5-£E17.8 and selling them to importers at £E18, indicating a two-pound slide in a single week and a five-pound slide on the month. This is despite a fixed bank rate of £E8.8.

The strengthening of the pound on the black market can be attributed to the announcement from Prime Minister Sherif Ismail that the central bank will issue new measures regarding the exchange rate. This announcement has caused black-market traders to hold back on buying and selling.

Egypt's black market has become the only source of foreign currency for many importing industries, which have found central bank limitations on currency withdrawals difficult to manage.