The Clap
The CBE explained what happened to the banks after the EGP drastically fell against the dollar, breaking the EGP 32 barrier, before settling at EGP 29 to the dollar.
What
When the EGP declined in value against the USD on Wednesday, the CBE said that banks reported inflows of $925mn, either locally or through transfers from Egyptians abroad.
So What
The large inflows explain why the EGP rebounded against the USD after its drastic decline at the beginning of the devaluation decision, as a result of an abundance of hard currency.
Now What
Over the past few days, banks were able to cover more than $2bn of importers’ requests, which could facilitate the import crisis.
