Flexible exchange rate helps stabilize commodity prices, avoid random pricing
Egypt has seen unprecedented rise and drop in the price of the US dollar against the Egyptian pound during trading sessions on Wednesday, as a result of the Central Bank's decision to float the Egyptian Pound in November 2022.
The US dollar price started with a surge recording LE 32, and then decreased to LE 29.67 on Wednesday.
The fluctuations are due to the free floating of the pound, which is regarded as a positive step towards ending non-random pricing of commodities, which has irritated citizens over the past period.
According to Tarek Metwally, the former vice president of Blom Bank Egypt, the exchange rate rises once and begins to balance with supply and demand, as he indicated that the market is trying to approach the parallel market, and Egypt must have one price for the dollar.