Do the Egyptian banks really have dollars or nothing? What are the signs that confirm that there is a respectable collection of American currency and that there is a huge reserve of it in all the banks? Stay with us and we will prove with more than one proof that the collection is large in foreign exchange. Follow us until the end.
The first evidence of the availability of the dollar in banks, and the strongest evidence that there is no crisis in it, is the stability of the price of the dollar in the banking market, which is the banks. We saw how from the hour of the floatation decision last March, the price of the dollar stabilized and ranged between 47.50 and 49.20 pounds, and this was the expectations of experts. The economy, banks, and international bodies also mean that the dollar has not experienced any jumps as it had before the floatation decision.
Ok, what happened after the exchange rate was liberalized?
Of course, you remember the black market, which controlled the dollar outside the banking market, and this was due to the large price difference between it and the price of the dollar, which was fixed in the bank. It was normal for the banks at that time to suffer from a scarcity of the dollar because huge sums of money from Egyptians abroad went to the parallel market for the currency while the price remained stable. This is also in the banks, but there are billions of hot dollars that left the country in 2022. However, the country has huge currency obligations, such as paying foreign debts, imports, and dues to oil and exploration companies. The global crisis in Egypt was a very big night. At the same time, crises began to rage around us, and the prices of goods rose globally in an unprecedented manner, putting pressure on the import bill and, of course, putting severe pressure on the volume of demand and withdrawals on the American currency.
Of course, what happened is that the Central Bank of Egypt took the most important decisions in its history to save the situation and carry out real reform in the exchange market and decided to liberalize the price of the Egyptian pound against other currencies. This was a very important decision because it unified the exchange rate in the banks and at the same time completely eliminated the black market for the currency and attracted foreign investments. In the banking market, whether direct investments for companies and economic entities or in Egyptian bonds, which are hot money. However, Egypt later learned the path of major foreign and Arab investments.
Time has proven that Bitcoin has been able to attract huge amounts of American currency, and we all remember the queues that were standing in front of the doors of the exchange companies affiliated with the banks in order to give up the dollar, and we saw currency traders getting rid of the currency they had stored, and since last March, I mean, we are talking in about 8 months, the exchange market has not been there. Major tremors, and on the contrary, the price of the dollar was in the range we mentioned, between 47 and 49 pounds, which is very normal with the application of a free exchange rate.
There is also another important piece of evidence of the availability of the dollar in Egyptian banks, which is that the black market for the currency has not returned at all since the time of the decision to liberalize the exchange rate. This is conclusive evidence that there is no crisis or shortage in the dollar, and what is natural is that speculation in the price has resumed again, as we saw before. Banks control the exchange market and have a large surplus of US currency.
