In an apparent attempt to curb demand for the greenback, Egyptian authorities freed the customs foreign exchange rate for non-basic and luxury commodities on Dec. 1. Going forward, the customs foreign exchange rate for non-basic commodities will be set according to the market price. On Dec. 5, the Egyptian pound stood at 17.95 to the dollar, CBE data showed. Authorities left the customs foreign exchange rate unchanged for staples, at 16 Egyptian pounds ($0.89) against the dollar.
The foreign exchange rate is a reference point that the Egyptian Customs Authority uses to calculate duties on imported commodities. The rate had been artificially low prior to the government floating the pound in November 2016 and doubled after the currency float, according CBE data.
