The US dollar exchange has reached unprecedented levels on the Egyptian market. After the dollar changed hands at 12 Egyptian pounds on the Egyptian market July 21, it continued to rise over the next three days, going above 13 pounds on July 25.

The manager of a currency exchange shop in Giza who preferred not to be named told Al-Monitor that statements made by Central Bank of Egypt Gov. Tarek Amer signaling another round of devaluation was around the corner have prompted those in possession of US dollars to hang on to them. He pointed out that this unprecedented exchange rate is due to the increase in demand for the dollar to meet the import needs amid a decrease in supply.

Amer said July 3 that the focus on defending the pound had been a grave mistake, costing the state billions of dollars, noting that a weaker currency would bolster exports. So far, the official price of the dollar stands at 8.85 pounds for purchase and 8.88 for sale, while the Central Bank has been pumping weekly $120 million at this price to support the banks operating in the local market.

Amer’s remarks were not the only reason for the dollar price spike. According to Khaled Abdel Fattah, a professor of finance and investment at Ain Shams University, the current Egyptian administration has been implementing national projects beyond the gross domestic product capacity, stressing that such projects have been a burden on the government and citizens instead of achieving desired economic gains.