In November 2016, the Central Bank of Egypt liberalized Egypt’s exchange rate and allowed the Egyptian Pound (LE) to float, leaving it to the market to decide the currency’s fair value. Currently the Egyptian Pound is trading around 17 LE to 1 USD.
Most businesses, restaurants and retailers accept debit cards, Visa, and MasterCard, however public service providers will not accept payment by credit cards. For example, utility bill collections, taxi services, smaller street kiosks will only accept cash payments.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
As someone deeply immersed in the field of international finance and economic policies, I bring a wealth of knowledge and expertise to the table. My understanding extends beyond theoretical frameworks to practical applications, allowing me to analyze real-world scenarios and developments.
Now, let's delve into the concepts highlighted in the provided article about Egypt's exchange rate liberalization in November 2016:
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Exchange Rate Liberalization:
- In November 2016, the Central Bank of Egypt implemented a significant policy shift by liberalizing the exchange rate. This move allowed the Egyptian Pound (LE) to float, relinquishing control over its value to market forces.
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Floating Exchange Rate:
- The decision to let the Egyptian Pound float means that its value is determined by the supply and demand dynamics in the foreign exchange market. This contrasts with a fixed exchange rate system where the government pegs the currency to another, often a major reserve currency like the U.S. Dollar.
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Currency Valuation:
- With the Egyptian Pound currently trading around 17 LE to 1 USD, this exchange rate reflects the market's perception of the currency's fair value in relation to the U.S. Dollar.
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Payment Methods:
- Most businesses, restaurants, and retailers in Egypt now accept various payment methods, including debit cards, Visa, and MasterCard. However, a notable exception is observed with public service providers, such as utility bill collections, taxi services, and smaller street kiosks, which still exclusively accept cash payments.
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Role of U.S. Commercial Service:
- The article mentions the U.S. Commercial Service of the U.S. Department of Commerce, which operates globally with 108 offices in the U.S. and more than 75 countries. This organization leverages its international presence and marketing expertise to assist U.S. companies in selling their products and services worldwide.
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Trade Specialist Locator:
- To further support U.S. companies, the article provides information on how to locate a U.S. Commercial Service trade specialist. Interested businesses can find the specialist nearest to them by visiting .
This comprehensive overview demonstrates the nuanced interplay between economic policies, currency dynamics, and international trade facilitation in the context of Egypt's exchange rate liberalization. If you have any specific questions or if there's a particular aspect you'd like to explore further, feel free to ask.
