> Debit card transactions are charged at the official rate of about 31 pounds to the dollar whereas on the black market a dollar sells for around 40 or 41 pounds. Egypt has kept its currency fixed against the dollar since March despite a widening gap with the black market rate.
As a foreigner, it may make sense to short the Egyptian pound versus a stronger currency like the USD and potentially get rich in the same way George Soros when he bet against the British pound in 1992 which was propped up by the Bank of England then.
Usually when there’s a currency arbitrage opportunity, locals will circularly exploit the currency arbitrage (potentially by exchanging pounds with an Egyptian bank for 10% more USD or perhaps another way) until the government spends more of it’s foreign reserves than it feels comfortable spending and simply can’t hold down the peg any longer.
As a foreigner, it may make sense to short the Egyptian pound versus a stronger currency like the USD and potentially get rich in the same way George Soros when he bet against the British pound in 1992 which was propped up by the Bank of England then.
Usually when there’s a currency arbitrage opportunity, locals will circularly exploit the currency arbitrage (potentially by exchanging pounds with an Egyptian bank for 10% more USD or perhaps another way) until the government spends more of it’s foreign reserves than it feels comfortable spending and simply can’t hold down the peg any longer.