Egypt

Egypt is changing its foreign currency modalities

Article by Ulrike Knaus, translated by Susanne Höfler | 13.09.2019 - 12:34

According to GTAI, Egypt declared Egyptian pound a freely convertible currency at the end of 2016, which caused a sharp depreciation compared to the US dollar. To counterbalance this, the Egyptian Ministry of Finance implemented an exchange rate regime for the conversion of foreign currencies at the beginning of 2017 instead of using the daily exchange rates issued by the central bank.

Since the situation on the foreign exchange market stabilized, and the exchange rate of the US dollar approached the Egyptian pound, the Egyptian Ministry of Finance no longer deemed it necessary to maintain the exchange rate regime in force since 2017.

This change is particularly relevant to softwood lumber exporters from Russia, Sweden and Finland as these countries have strong exports flows to Egypt.