CAIRO - 7 March 2024: Egypt has adjusted the customs dollar to EGP 49.56 in response to the surge in the dollar's value in banks on Wednesday.
The decision was made shortly after the Central Bank of Egypt's move to float the Egyptian pound (EGP) and increase interest rates by 600 basis points.
The customs dollar, an economic term denoting the exchange rate of the dollar against the pound, is employed by customs authorities to determine the value of imported goods for calculating customs duties.
On Wednesday, the dollar rate in banks surpassed EGP 50, following the Central Bank of Egypt's decision to raise interest rates by approximately 6% in an extraordinary meeting. However, it later decreased below the EGP 50 level in several banks on Thursday.
The CBE raised the overnight deposit rate, the overnight lending rate, and the main operation rate by 600 basis points, reaching 27.25%, 28.25%, and 27.75%, respectively. Additionally, the discount rate was increased by 600 basis points to 27.75%.
Since the flotation of the pound in January 2017, Egypt has been setting a monthly fixed customs exchange rate. The customs dollar rate is adjusted each month.
