The parallel currency market is fading in Egypt?

In an interview with Al-Arabiya, Elite Financial Consulting board member Mohamed Kamal expected the Egyptian central bank to depreciate the Egyptian pound by about 15% against the dollar during its scheduled meeting this week.

Kamal added that the Central Bank’s Monetary Policy Committee is expected to approve a significant interest rate hike on Dec. 22.

He explained that the adoption by the Central Bank of Egypt of a flexible exchange rate, with the release of the first tranche of the IMF loan to Egypt, will contribute to the fading or disappearance of the parallel currency market.