The madness of the dollar… economic collapse and starvation of the Egyptians due to the military gang’s struggle for the green currency

A state of madness is sweeping the military gang due to the frantic race to raise the value of the US dollar against the Egyptian pound, and thus raise prices on the Egyptians to the point that the head of the family can no longer buy the basic daily requirements of his children, and thus the employment circles for foreigners and conspiracy against the people of the country continue from the past to The present, which was depicted by the poet Ahmed Shawqi with expressive words that reveal what is happening on the ground and expose the gang at all times.

The Central Bank of Egypt had decided to limit dealing with bank dollars and not accept any documentary credits funded by exchange offices or from the market from companies to cover import requests, which means closing exchange companies with “dabba and key” and the inability of importers to import goods and products, which will lead to The end to raise prices and starve the Egyptian people.

It is noteworthy that the new instructions were distributed by the Central Bank to exchange companies through inspection campaigns that took place on most ATMs in the past few days and resulted in the writing off of about 80% of ATMs operating in the market for allegedly violating the instructions.

Black market

About this catastrophic decision, an official source in the Central Bank claimed that it aims to eliminate any negative practices and hit the black market in a large way, and to maintain the exchange rate of the dollar against the pound, indicating that exchange companies deal with individuals only and not with companies.

The source admitted that the companies were obtaining dollars from exchange companies with the commercial registration number and the import card, stressing that the Central Bank’s instructions to stop all these transactions for companies to limit the provision of dollars to companies from banks only will deprive these companies of one of the sources of obtaining dollars.

He revealed that the Central Bank had issued instructions to exchange companies with strict controls to sell dollars to citizens.

exchange companies

On the other hand, the General Federation of Chambers of Commerce decided to cancel the exchange division and replace it with a coordinating council to follow up the activities of exchange companies in Egypt.

The new law obligated the exchange companies to adopt an Egyptian joint stock company, the sole purpose of which is to engage in exchange operations, and the minimum paid-in capital should be 25 million pounds, compared to 5 million pounds in the previous law.

Sources in exchange companies confirmed that there are strict instructions from the Central Bank to prevent money changers from buying dollars from citizens except under strict conditions, noting that these decisions contain in their content the closure of exchange companies and the layoff of their employees.

The sources criticized the Central Bank’s allegations that it is working to protect the banking sector from any manipulation in light of the current global pressures on currencies, the dollar and oil, stressing that there is a noticeable decline in exchange companies after the legal controls approved by the Central Bank, which make money changers linked to banks.

It revealed the impossible conditions set by the Central Bank to allow exchange companies to deal in the dollar, including proving the source of the dollar in the case of sale, whether by foreign transfer or by any means whatsoever, for amounts higher than 2000 dollars. Official and leave the seller’s complete data to be sent to the Central Bank.

The sources pointed out that those wishing to possess dollars in the event of travel must submit a copy of the travel visa, whether for work or tourism. Similarly, in the case of foreigners in Egypt, they must submit a copy of the tourist visa in the event of a desire to sell dollars.

She added that the Central Bank will distribute a complete file of importers registered for their approval with the exchange companies, so that the dollar is granted for the purpose of import to approved importers only, provided that their records are recent for less than 3 months.

The sources criticized the Central Bank’s measures that seek to stop selling dollars to citizens and at the same time oblige anyone who buys or sells dollars to report the reason behind their possession of dollars, stressing that the dollars are available in the markets, and therefore these strict controls are unjustified.

big deficit

Economic researcher Abdel Hafez El-Sawy, head of the Economic Committee of the Freedom and Justice Party, confirmed that the decisions of the Central Bank of Egypt reveal a large deficit in the foreign currency needed by the military regime, noting that despite the liberalization of the exchange rate of the pound in November 2016 and then liberalizing it again within a month. Last March, however, the coup government imposes protection on it to keep it from retreating for the purpose of camouflaging foreign investors and attracting hot money to its treasury and then paying it back to them through a known series of borrowing in order to repay the loans, and this makes the value of the pound unreal, so prices rise.

Al-Sawy said in press statements that devaluing the currency again is not an economic decision, but rather it is subject to the dictates of the International Monetary Fund and the World Bank, explaining that the Central Bank was supporting the pound through more borrowing, but it seems that foreign pressures have increased and that the military regime will succumb to these pressures.

He pointed out that the coup government is aware of the extent of poverty that has spread among Egyptians after the flotation of the Egyptian pound in 2016, warning that the new measures will double the number of the poor, threatening a famine among Egyptians.

Al-Sawy expressed his regret that the coup regime did not care about the fate of the Egyptians, and even sacrificed the poor for foreign investments and the implementation of the dictates of the International Monetary Fund.

monetary fund

Mona Badir, chief economist at Prime Investment Bank, said, “Determining the dollar’s path against the pound is controlled by several factors, the most important of which is the coup government’s attempt to conclude an agreement with the International Monetary Fund and obtain new loans to be added to the foreign debt, which approached $150 billion early this year.”

Mona Badir explained in press statements that the Central Bank’s actions come in the context of yielding to the dictates of the International Monetary Fund in order to secure access to foreign aid and cash flows to the dollar.

She pointed out that the coup government claims that these measures are necessary to provide goods at appropriate prices for citizens, although the reality indicates that they are raising prices.

Mona Badir added that the Central Bank’s decisions became a mere reaction to measures and decisions related to the monetary policy of the US Federal Reserve and its impact on interest rates in Egypt.

Source: بوابة الحرية والعدالة by

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