Has Egypt’s Exchange Rate Policy Changed after the Float?

Hoda Selim

Middle East Development Journal, 2012, vol. 4, issue 1, 1250005-1-1250005-27

Abstract: The Central Bank of Egypt announced the flotation of the Egyptian Pound in January 2003. Yet, the somewhat stable exchange rate raises questions about its actual role in monetary policy. This paper assesses whether exchange policy significantly changed after the float. It first applies cointegration methodology using monthly data from 1981 to 2008 to show that there is a long-run relationship between the LE/US$ exchange rate and monetary fundamentals. A vector error-correction model shows that the speed of exchange rate adjustment to long-run equilibrium is slow and that there has not been a significant change in exchange rate determination after the float. Finally, Egypt’s de facto exchange rate regime could be classified as “fixed” for several years after the de jure float was announced.

Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://hdl.handle.net/10.1142/S1793812012500058 (text/html)
Access to full text is restricted to subscribers.

Related works:
Journal Article: HAS EGYPT'S EXCHANGE RATE POLICY CHANGED AFTER THE FLOAT? (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:rmdjxx:v:4:y:2012:i:1:p:1250005-1-1250005-27

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rmdj20

DOI: 10.1142/S1793812012500058

Access Statistics for this article

Middle East Development Journal is currently edited by Raimundo Soto

More articles in Middle East Development Journal from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().