Russia Adds the Egyptian Pound to its Exchange Rate List: What Does This Mean?

Russia Provides the Egyptian Pound to its Trade Fee Listing: What Does This Imply?

Picture credit score: Dreamstime
In a shock transfer from the Russian Central Financial institution on Wednesday January 18, the Egyptian pound was added to the Russian change charge checklist, the Russian Embassy in Egypt introduced.
Egyptian economists praised this resolution, describing it as a “constructive step” for the ailing Egyptian pound.
Previous to this resolution, Egyptian imports from Russia traded utilizing the US greenback. This transfer will increase reliance on each native currencies and reduces demand for the US greenback in each nations.
Not solely will this resolution permit Egypt to import from Russia in Egyptian kilos, it is going to additionally permit Egyptians who journey to Russia to have the ability to change their cash from Egyptian kilos to Russian rubles. This reduces dependence on US greenback reserves since Egypt has been combating a scarcity within the international foreign money for the previous few months.
In keeping with Egyptian economist Tarek Metwally, this step can even contribute to boosting tourism in Egypt. Since potential Russian vacationers have been struggling to accumulate US {dollars}, fewer of them have been visiting Egyptian resorts, the place the US greenback is often the foreign money utilized by vacationers. Now that this resolution has been made, Russian vacationers won’t have to depend upon the US greenback as they will swap to EGP earlier than touring.
Except for the Egyptian pound, Russia additionally added the Thai baht, the Vietnamese dong, the Serbian dinar, the New Zealand greenback, the Georgian lari, the Indonesian rupiah, the UAE dirham, and the Qatari riyal, to its change charge checklist.

In keeping with the United Nations Comtrade database on worldwide commerce, Egyptian imports from Russia totalled almost USD 2.48 in 2021.
Egypt and Russia have an extended historical past of strategic ties and mutual cooperation in a number of fields. Egypt is Russia’s greatest wheat purchaser, and in 2022, it was the second hottest vacation vacation spot for Russians.
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