The Central of Bank of Egypt is working on a new index consisting of gold and foreign currencies aside from the US dollar. The bank’s acting head, Hassan Abdalla, revealed the plan Sunday at an economic conference in the country, the state-owned Al-Ahram reported.
What is it: Countries use indexes of foreign currencies to measure how their own currency is performing. The US dollar Index, for example, consists of the euro, Swiss franc, Japanese yen, Canadian dollar, British pound and Swedish krona.
Why it matters: The Egyptian pound has decreased to historic lows against the dollar in recent weeks. Throughout the year, the currency has been stressed by the global economic storm. The pound is doing better against other currencies, however. It recently appreciated against the euro and British pound, Marc Espanol reported for Al-Monitor this month.
In his remarks, Abdalla pointed out the pound’s relatively better performance against other currencies, according to Al-Ahram. This could be why Egypt is pursuing the new index.
Know more: Egypt is experiencing a shortage of US dollars, which has led some banks to restrict dollar withdrawals recently.
Business and policy professionals use PRO to monitor the regional economy and improve their reports, memos and presentations. Try it for free and cancel anytime.
Join over 50,000 readers who access our journalists dedicated newsletters, covering the top political, security, business and tech issues across the region each week.
Delivered straight to your inbox.
Free newsletters available:
- The Takeaway & Week in Review
- Middle East Minute (AM)
- Daily Briefing (PM)
- Business & Tech Briefing
- Security Briefing
- Gulf Briefing
- Israel Briefing
- Palestine Briefing
- Turkey Briefing
- Iraq Briefing
Join the Middle East’s most notable experts for premium memos, trend reports, live video Q&A, and intimate in-person events, each detailing exclusive insights on business and geopolitical trends shaping the region.
We also offer team plans. Please send an email to pro.support@al-monitor.com and we’ll onboard your team.
Memos – premium analytical writing: actionable insights on markets and geopolitics.
Live Video Q&A – Hear from our top journalists and regional experts.
Special Events – Intimate in-person events with business & political VIPs.
Trend Reports – Deep dive analysis on market updates.
All premium Industry Newsletters – Monitor the Middle East’s most important industries. Prioritize your target industries for weekly review:
Join the Middle East’s top business and policy professionals to access exclusive PRO insights today.
Follow Al-Monitor
© 2021 Al-Monitor, LLC. All rights reserved.
Follow Al-Monitor