The Central Bank of Egypt is developing an index for the Egyptian pound. This is done to abandon the pegged currency to the dollar. This was announced by President of the Egyptian Central Bank Hasan Abdallah.

During one of his recent speeches, the governor said that the national currencies of countries whose main source of profit is oil have pegged their currencies to the dollar.

Abdallah said that it does not matter what the dollar exchange rate is today. Today his country is actively developing and integrating the Egyptian pound exchange rate. But the head of the National Bank clarified that he sees the United States as a key Egyptian partner.

The Egyptian pound indicator could be based on a basket of several currencies, as well as gold, and other precious metals. This would help get rid of pegging currency to the dollar.

Earlier this year, the National Bank raised its key rate by 100 points. As a consequence, the level of devaluation of the Egyptian currency was 27%. Today, thanks to the competent monetary policy it was possible to regain some of the positions of the Egyptian pound against the key world currencies.

Earlier we reported that Germany is cutting military rearmament programs due to inflation and the weak euro.