News

Egypt Launches Radio Campaign Encouraging Citizens to Shun Black Market, Trade Dollars at Banks

Egypt Launches Radio Campaign Encouraging Citizens to Shun Black Market, Trade Dollars at Banks

Employees speak on phones at an exchange office in downtown Cairo June 5, 2014. REUTERS/Amr Abdallah Dalsh
Employees speak on phones at an exchange office in downtown Cairo June 5, 2014. REUTERS/Amr Abdallah Dalsh

Egypt’s government has launched a radio campaign to encourage Egyptians to stop trading foreign currency on the parallel market and instead rely solely on banks.

The campaign tells listeners that trading at banks will help alleviate the shortage of dollars in the country and reduce inflation.

Last week, Egypt’s central bank moved to float the Egyptian pound and allowed banks the freedom to set individual rates for dollar exchange based on supply and demand.

According to Reuters, however, banks have been holding to their limited supplies of dollars, pushing up the price of the greenback to EGP 16.83.

Prior to Egypt’s move to float the currency, importers relied largely on the parallel market for much-needed foreign currency that became unavailable through official channels as the central bank began implementing strict measures to preserve the country’s foreign reserves.

However, leaders from the Federation of Egyptian Chambers of Commerce called for a boycott of the parallel market last week, after dollars began trading at an all-time high of EGP 18. Following the boycott, the pound strengthened on the parallel market and dollars were being sold for between EGP 12 and 15.

Now that the official dollar rate has risen, Egypt is hoping to re-attract the foreign currency that had been trading on the parallel market back to the country’s banks.

Egypt’s foreign reserves stood at USD 19.592 billion at the end of September.

American University in Cairo President Promises Solutions After Students Protest Tuition Hikes
Egypt Court Upholds Decision to Annul Transfer of Red Sea Islands to Saudi Arabia

Subscribe to our newsletter


News

More in News

Egypt's Karim Abdel Gawad and France's Camille Serme

Egypt’s Karim Abdel Gawad Wins Tournament of Champions in New York

Egyptian StreetsJanuary 21, 2017
22.jpg.crop_display

Cairo Court Lists Egyptian Football Legend Aboutreika on Terror List

Egyptian StreetsJanuary 19, 2017
32385636795_e6f5d7101d_z

Egypt Secure Spot in Knockout Stage at 2017 Handball World Championship

Egyptian StreetsJanuary 19, 2017
1073779_big-lnd

Egypt’s Essam El-Hadary Makes African Cup History

Egyptian StreetsJanuary 18, 2017
pol

Eight Policemen Killed in Attack in Egypt’s New Valley

Egyptian StreetsJanuary 17, 2017
Tiran Island

Egypt High Court Declares Void Transfer of Tiran and Sanafir to Saudi Arabia

Egyptian StreetsJanuary 16, 2017
Top-best-hd-wallpapers-dubai-skyline-hd-wallpapers-imagen-by-balamuda

Egyptians Invest EGP 13 Billion in Dubai Real Estate in 2016

Egyptian StreetsJanuary 15, 2017
A pharmacist searches for medicine at a pharmacy in Cairo, Egypt, November 17, 2016. REUTERS/Mohamed Abd El Ghany

Medicine Prices in Egypt Increased by up to 20%

Egyptian StreetsJanuary 13, 2017
Egyptian Streets is an independent, young, and grass roots news media organization aimed at providing readers with an alternate depiction of events that occur on Egyptian and Middle Eastern streets, and to establish an engaging social platform for readers to discover and discuss the various issues that impact the region.

© 2016 ES Media UG. All Rights Reserved.