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  • Friday ,17 February 2017
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Is the decline in the US Dollar real?

Magdy Malak

Article Of The Day

20:02

Saturday ,18 February 2017

Is the decline in the US Dollar real?

Lately, the US dollar had declined by 3 Egyptian Pounds, which lead everyone to believe that the government was right when it made the deceison of floating the Egyptian Pound against the US dollar. 

But we need to ask this question before becoming optimistic or pessimistic: is this decline real? Will this decline continue? And, what does it mean?

From my opinion, the decline of the US dollar is not real and it will not last more than 3 to 4 months maximum, and the reason I say this is because nothing has changed in the Egyptian economy to improve the situation of the Egyptian Pound against the US Dollar. 

Let's take tourism for example. Egypt is still suffering from a lack of toursim and tourists who can bring and spend US dollars. By this way, Egypt can get more dollars than they need, consequentially, the Egyptian Pound will then gain more power to face the US dollar.

In conclusion, I want to emphasize that I hope that this decline in the US dollar is real, however, I don't think this is real and I expect that in 3 to 4 months we will be talking again about the soar of the US dollar against the Egyptian pound. 

If we want the US dollar to have real decline against the Egyptian pound, we need to work hard to get more US Dollar through more exports or decrease our import and be self independent.