It does win the Chinese yuan against the dollar in its battle to revive the Egyptian pound?
Traders confirmed the Egyptian market decline in the dollar in the market Almozaah, after starting to use the Chinese yuan trade transactions rather than the US dollar, according to the Convention, which has between Egypt and China to swap currencies.
The Central Bank, in December last year, it entered into a bilateral agreement currency swap with China’s central bank, the total amount of 18 billion yuan (equivalent to US $ 2.6 billion) compared with the equivalent in Egyptian pounds, and apply this Agreement for a period of three years and can be extended with the consent of both parties.
It is expected to use this agreement to facilitate trade between the two countries, and relieve pressure on the dollar, which is facing Egypt crisis decline in sources during the recent period.
He says Najib -skrter club in Division Alzhb- The dollar rate in the parallel market fell to 18.90 pounds for the first time, having missed 20 pounds, after the decision to float the pound in November.
Explains, “Najib”, in a special statement to Masrawy, that this decline came after the currency “Chinese yuan” use in commercial transactions, where there became the possibility of importing goods from China in yuan rather than dollars, next to the rationalization of import procedures taken by the government during the past period, which led the presence and abundance in the dollar market, pointing out that these reasons have led to a lack of demand for the dollar versus the supply of it, where to change its price is subject to supply and demand, and the decline of the dollar since yesterday contributed to the decline in gold today’s prices by about 8 pounds per gram.
For his part, says Ahmed Niazi, a member of the exchange Division of the Federation of Chambers of Commerce, said that the exchange of currency swap entered into by the central bank last month’s agreement, it has already been applied since 10 days, and this agreement will contribute significantly to the decline in demand for the dollar and provide the market and thus lower its price, where it is one of supposed to provide about $ 30 billion to Egypt.
He adds Niazi, in a special statement, that despite the black market, the disappearance and elimination since the float the pound, but they still exist, represented in private investment banks, as these banks have begun to purchase a large amount of the dollar since the flotation until saturated and then refrained from selling, waiting to rise price to a maximum and then start selling, explaining that these transactions are the same as what was done on the black market.
Niazi pointed out that the monopoly of any commodity is why the “ruin”, predicting that the dollar up to 22 pounds until next March and then falling to around 12 or 13 pounds.
Despite the optimistic tone, however, Ahmed Sheha, president of the Chamber of Commerce importers Division, confirms that the dollar is still up, explaining that the black market still exist and did not over yet, as the government says.