Egypt plans to develop a new indicator for its currency to be linked to a basket of gold and other currencies besides the US dollar, the new Central Bank Governor said.
Hassan Abdalla, the Governor of the Central Bank of Egypt (CBE), said at a major economic conference in Cairo on Sunday: "Since Egypt is a non-oil exporter, there was no need to peg its local currency to the US dollar."
He added that the CBE 'is aiming to change this concept', and that the CBE has finalized the forward contracts for the Egyptian pound. "The CBE is working on the hedge contracts for the local currencies as a tool to navigate the impacts of the Russian-Ukrainian conflict which affected the hard currency in the Egyptian market," he added.
The Egyptian economy has been struck hard by the many different consequences of the Ukraine war. The Egyptian pound plunged to a record low against the dollar in October. The country is seeking a loan agreement with the International Monetary Fund to shore up its economy.
Source: middleeastmonitor.com