Egypt to Develop New Currency Indicator to Wean People Off US Dollar
CAIRO—Egypt will develop a new currency indicator partly to wean people off the idea that the Egyptian pound should be pegged to the U.S. dollar, the new central bank governor said on Sunday.
Hassan Abdalla, appointed in August, told an economic conference that the central bank was also working to introduce currency hedging and had already finished futures contracts as it revamps its currency trading system.
The indicator would be based on a basket of several currencies and possibly gold, he said.
“It is for the sake of the idea of pegging—and I’m not talking about the price, I’m speaking about the idea,” he said. “America is not my major trading partner. I don’t know why people are always fixated on the dollar….