Egyptian pound exchange rate will neither be floated nor fixed in face of foreign currencies
Egypt's Prime Minister Atef Ebeid said that the government has no plans at all either to float or to determine an exchange rate for the Egyptian pound, in the face of foreign currencies.
He said that the Egyptian pound exchange rate is determined by the mechanisms of the market and the powers of supply and demand.
However, he added that the Central Bank will continue to interfere when dollar exchange rate unjustifiably rises with the aim of bringing about a price balance in the proper timing.
Dr. Ebeid said that the Central Bank is the only body which is in charge of determining a proper and realistic exchange rate for dollar.
However he said that the CBE allows the Egyptian pound exchange rate to rise and to come down according to market mechanisms.
Ebeid said that banks are prepared to staisfy all dealings, describing exchange rates of currencies as realistic and genuine.
He pointed out that exchange rates declared by exchange companies do not reflect reality on the ground.
Ebeid, while answering a number of question, said there is no country in the world other than the United States, which allows its currency to float adding that Argentina, is the only country in the world which fixes the exchange rate of its currency.
Ebeid attributed the reasons behind dollar exchange rate rise to speculations.
Meantime, Prime Minister Atef Ebeid said that the board of directors of the Social Fund for Development (SFD) would hold an urgent meeting today in which it would declare all facts of the fund dealings before public opinion.
He said that the fund's board will discuss its budget, its plan of action for providing 250,000 job opportunities, implementing its infrastructure needed for reactivating the fund's performance in the following domains:
- Nurseries and technical technological support centres.
- Studying demand on products and services of small size projects.
- Conducting initial feasibility studies for small-size projects.
- Simplifying measures for the establishment of small size projects in the governorates.
Ebeid said that the board of directors of the social fund for development will also discuss the establishment of development projects in Sinai, Upper Egypt governorates through a financing worth 300 million dollars offered by European Union.
He said the SFD board will also discuss training youth on the establishment of small size projects.
Answering a question on the visit to Egypt next week by Taha Yassin Ramadan, the Deputy Iraq Prime Minister, Ebeid said that this visit will be culminated with signing a free trade agreement between Egypt and Iraq.
He said such a visit assumes a special significance as it would help boost and develop economic relations. He put the volume of the Egyptian contracts to Iraq at $ 1.5 billion.
Ebeid said that the government is seeking to secure abudance of essential commodities so as to security some sort of price stability to rein in their prices.