The Clap
The CBE is prepared to offer a new financial derivative to support investors and lenders as the currency continues to fluctuate.
Financial Derivatives
Domestic non-deliverable forwards (NDFs), the derivative to be offered, provide protection for investors against the risk of currency depreciation.
To learn more about this financial instrument, click here.
The Deets
The decision came after the EGP dropped to record levels as Egypt continues to negotiate with the IMF, which is asking Egypt for greater flexibility in the exchange rate.
Why this Matters
Hisham Ezz Al-Arab, the CBE governor’s advisor, said that the currency market in Egypt has been in need of products like this for a long time and that this form of derivatives helps support liquidity in the market.
