{"id":16616,"date":"2023-01-18T23:19:19","date_gmt":"2023-01-18T23:19:19","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/nearly-1-billion-poured-into-egypts-forex-market-local-currency-now-worlds-worst-performing-currency-in-2023-economics-bitcoin-news\/"},"modified":"2023-01-18T23:19:19","modified_gmt":"2023-01-18T23:19:19","slug":"nearly-1-billion-poured-into-egypts-forex-market-local-currency-now-worlds-worst-performing-currency-in-2023-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/nearly-1-billion-poured-into-egypts-forex-market-local-currency-now-worlds-worst-performing-currency-in-2023-economics-bitcoin-news\/","title":{"rendered":"Nearly $1 Billion Poured Into Egypt’s Forex Market \u2014 Local Currency Now World’s Worst Performing Currency in 2023 \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The Egyptian central bank recently claimed that its decision to devalue the local currency has been vindicated by foreign investors\u2019 return to the country\u2019s foreign market where they reportedly poured in $925 million in just three days. The surge in the sales of Egyptian treasury bills that mature in a year or less similarly is said to vindicate the central bank\u2019s devaluation of the pound. <\/strong><\/p>\n

Surge in Treasury Bill Sales<\/h2>\n

Foreign investors reportedly moved $925 million into Egypt\u2019s foreign exchange market just days after the local currency\u2019s exchange rate versus hard currencies sharply declined. In addition, the country\u2019s forex market has also received inflows from the so-called local sources as well as from Egyptians working abroad.<\/p>\n

According to a Reuters report<\/a> based on the Central Bank of Egypt (CBE)\u2019s Jan. 16 statement, just three days after the Egyptian pound\u2019s devaluation on Jan. 11, Egyptian banks were able to fulfill importers\u2019 requests for forex amounting to $2 billion. In its Arabic language statement<\/a>, the CBE reportedly said the return of foreign investors, which is also evidenced by the surge in the sale of Egyptian treasury bills, vindicates its decision to switch from a fixed to a flexible exchange rate regime.<\/p>\n

As recently reported<\/a> by Bitcoin.com News, the Egyptian pound briefly fell to an all-time low of 32.14 units of the local currency for every dollar. By allowing the pound to depreciate by more than 16% in just under a year, the CBE met a key International Monetary Fund demand. Satisfying this demand allowed the IMF to approve Egypt\u2019s $3 billion loan package.<\/p>\n

Meanwhile, a Bloomberg report<\/a> said Egypt\u2019s net international reserves had risen despite the debt repayment of $2.5 billion that was made in late 2022. To help Egyptians counter the effects of rising inflation, local banks are now reportedly selling currency derivatives, the CBE said.<\/p>\n

Since plunging to an all-time low of 32.14 per dollar, the Egyptian pound has marginally recovered and at the time of writing, it trades at around 29.57 per dollar on Jan. 17 (16:32 EST).<\/p>\n

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What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, Igal Vaisman \/ Shutterstock.com<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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