A collapse in the currencies of Arab countries against the dollar.. some of them recorded historic numbers

-

Today, Tuesday, the currencies of several Arab countries witnessed a collapse in exchange rates against the US dollar, and some of them reached historical numbers and levels in light of the economic crises afflicting them.

Collapse in several currencies of Arab countries

And from Syria and Lebanon, whose local currencies collapsed, where exchange rates began to fluctuate in Syria at around 6,800 Syrian pounds per one dollar, while the price of the dollar exceeded the threshold of 53,000 Lebanese pounds.

This significant increase reflects the extent of inflation experienced by the financial sector in the two countries, while the collapse of the lira there is due to a number of reasons.

A collapse in the currencies of Arab countries against the dollar.. some of them recorded historic numbers
A collapse in the currencies of Arab countries against the dollar.. some of them recorded historic numbers

According to experts, the scarcity of hard currency assets at the Central Banks of Lebanon and Syria, in addition to various other factors, including raising the official exchange rate in Syria to the limits of 4,500 pounds, which means that it has become the irreversible minimum, in exchange for setting a new official exchange rate for withdrawals of 15 pounds to one dollar. In Lebanon.

In addition, the political crises in the two countries are still negatively affecting the economy, as Syria has been suffering from a war for a decade, and there are no signs of solutions on the horizon, while Lebanon is living in a government vacuum and a crisis over the election of a new president and sharp disagreements.

The exchange rates of the dollar against the Syrian and Lebanese pounds affect most, if not all, aspects of life, as the prices of fuel and transportation rise and the purchasing power of citizens decreases, amid huge inflation affecting the joints of life in the two countries.

Egyptian pound

Egypt has been suffering for some time due to the scarcity of foreign exchange in the country, which caused the Egyptian pound to drop dramatically, reaching more than 29 pounds per dollar.

A collapse in the currencies of Arab countries against the dollar.. some of them recorded historic numbers
A collapse in the currencies of Arab countries against the dollar.. some of them recorded historic numbers

Yesterday, the Central Bank of Egypt raised the price of the dollar to the level of 29.83 pounds for purchase, compared to 29.92 pounds for sale.

Deutsche Bank predicted; It is Germany’s largest bank, that the Egyptian pound will decline by 10 to 33 percent against the dollar before it stabilizes.

--

Egypt was affected; The most populous Arab country, severely affected by the economic repercussions of the Russian war in Ukraine since February 2022; It is one of the largest importers of wheat in the world. Until then, it was a prime destination for volatile money, thanks to a combination of a fixed currency rate and the world’s highest interest rates when adjusted for inflation.

-

Iraqi dinar

The Iraqi dinar was not in a better condition than the currencies of other Arab countries, as the Iraqi Prime Minister, Muhammad Shia’a al-Sudani, announced yesterday, Monday, the dismissal of the Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif, from his post, due to the deterioration of the country’s currency level.

The move to dismiss the governor of the central bank came with a set of decisions launched by the Iraqi prime minister, including the referral of the director of the Iraqi Trade Bank, Salem Jawad Al-Jalabi, to retirement, and the assignment of Bilal Al-Hamdani to run the government bank, which was established after the US invasion of the country in 2003.

The dismissal of the central bank governor from his post comes at a time when the Iraqi currency has lost nearly 10% of its value in parallel markets over the past two months.

And the exchange rate of the dollar during the past two days exceeded the barrier of 1660 dinars to one dollar, at a time when the Iraqi government sells it through the currency auction at the Central Bank at 1460 dinars to the dollar.

Yemeni riyal

The Yemeni riyal recorded a new decline against the US dollar, and the dollar reached 602 riyals during exchange transactions in the black market yesterday, compared to 607 riyals for sale, while the central bank prices were 450 riyals for purchase and 451 riyals for sale.

In this regard, Yemeni President Abd Rabbo Mansour Hadi directed the Yemeni government the day before yesterday to take the necessary measures to stop the decline of the Yemeni riyal against foreign currencies, and to prevent speculation that harms the national currency.

The Yemeni president urged the governor of the central bank and officials to “work hard with the available capabilities to maintain the stability of the exchange markets, confront the exchange rate manipulators, and fully coordinate between the bank and the government.”

A collapse in the currencies of Arab countries against the dollar.. some of them recorded historic numbers
A collapse in the currencies of Arab countries against the dollar.. some of them recorded historic numbers

-

--

PREV Crisis of “oil bribery” in Nigeria hits gas projects
NEXT The investigating judge in the Beirut port explosion charges the Attorney General and the former Prime Minister