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Can floating Egyptian pound kill foreign currency black market?

Egypt's latest flotation of its currency may rein in its thriving foreign currency black market, but economists cannot see an end to this market in the near future.
The Egyptian pound and US dollar banknotes are seen in this photo taken on Aug. 25, 2022.

CAIRO — Speculation is rife over the future of a burgeoning parallel foreign currency market, after the Central Bank of Egypt (CBE) ended a managed exchange rate regime, allowing the Egyptian pound to trade freely against foreign currencies, for the second time in six years.

Apart from liberalizing the pound Oct. 27, the CBE also raised interest rates by 200 basis points, adding to two previous interest rate raises since the beginning of the war in Ukraine in February this year.

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