CAIRO: The Currency black market has been “wiped out” thanks to measures taken by the Central Bank of Egypt (CBE,) Youm7 quoted CBE’s Governor Hisham Ramez Monday, who vowed that it would not appear again.
Starting Jan. 18, the central bank allowed the pound to weaken against the dollar in 10 consecutive depreciations, a step was intended to control the black market ahead of the Egypt Economic Development Conference (EEDC) held in Sharm el-Sheikh in March.
Foreign investors usually have concerns over markets offering two prices for currency exchange rate.
Speaking at the Union of Arab Banks’ conference held in Cairo Monday, Ramez said: “The black market emerged due to exploiting Egypt’s circumstances over the past period.”
Ramez defended his decisions, and accused those criticizing them of “having self-interests.” He added, “Neither me or the coming governor could retreat from such decisions again.”
The International Monetary Fund’s (IMF) Director of the Middle East and Central Asia Department Masoud Ahmed, welcomed Egypt’s Central Bank procedures to address the parallel market.
“They are welcome because they do try to bring about a reduction of any differentials between the parallel market and the official market,” Masoud said during a press briefing on the sidelines of the World Bank Group and IMF 2015 annual Spring meetings in Washington, D.C this month.
Having a unified market “would help to create the basis for more investment, and better functioning of the exchange markets, and as a result encourage investment and growth,” he added.
Additional reporting by Hany el-Hoty.