Egypt allows its currency to float with increasing strongly

The Central Bank of Egypt allows its currency to float, and it increased interest of 300 basis point.The Central Bank of Egypt points out that exchange rate will be determined by supply and demand.President Tarek Amer remarked that the Central Bank of Egypt liberalized exchange rate.

Economical situation in Egypt :

Economic policies which were applied by three different goverments, decreasing in income of the Suez Canal, and decline in number of tourist up to 70% after Russian passenger plane which felt in Sinai Peninsula brought the country to the verge of economic crisis. Decline in foreign Exchange reserves causes to cheapen in Egyptian Pound against to dollar. While value of United States dollar was 8 Egyptian Pound in free market a year ago, it increases up to 17 Egyptian Pound in these days. Goverment closed all exchange offices to stop rise of dollar, and that caused to occur black market of dollar and increase dollar. Rise of dollar increased price of staple food up to 100%. Famine of sugar, which have been suffered for last one month, cannot be solved. Security units confiscated stocks by swooping in stocks of merchants of sugar and black marketters. Finding sugar in grociers is impossible in Egypt. Maximum 5 kg sugar is given in cities like Cairo, Giza, Alexandria. Price of sugar exceeded to 10 Egyptian Pound while it was 5 Egyptian Pound before the crisis.