IMF new deal to put end for dollar, gold unstable rates

The International Monetary Fund’s (IMF) new loan agreement will put an end – in the short term – to the exaggerated increases in gold and currency prices against the Egyptian pound, said the head of EG-Bank Nidal Assar.

The new financing and reform programme will have positive repercussions on the Egyptian economy in a large way for the upcoming period, Asr made his remarks during a phone call in a TV show on Monday.

He pointed out to the emergence of some features during the past two days through the decline of gold and dollar prices in the black market.

“The entry of new liquidity in foreign currency, whether through a loan from the IMF or Egypt’s international and regional partners, certainly contributes to filling a large part of the foreign currency demand…” Asr explained.

In 2016, the dollar exchange rate has recorded 19.6 pounds then it dropped down to 15.7 pounds over the following four years, Asr remarked.