The Central Bank of Egypt (CBE) is working on setting an index for the Egyptian pound that will be linked to a basket of gold and other currencies besides the US dollar, the CBE’s acting governor Hassan Abdalla said on Sunday.
Abdalla made his comments during his participation in the first day of Egypt’s Economic Conference which kicked off on Sunday under the auspices of Egypt’s President Abdel Fattah El-Sisi who was also present.
Abdalla explained that since Egypt is a non-oil exporter there was no need to peg its local currency to the US dollar, adding that the CBE is aiming to change this concept.
CBE also plans to launch a currency hedged index as part of a hedging mechanism to protect against swings in the Egyptian pound, he added.
“The central bank is currently working on the currency hedging mechanism.” Abdalla said at the Egyptian Economic Conference (EEC 2022).
He added that the central bank has also “finalised the forwards contracts for the currency, and is working on the hedging contracts.”
