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Monday, 24 October 2016

EgyptAir pricing tickets at above the CBE exchange rate

Has the government already begun repricing services ahead of devaluation? A number of government agencies and companies including EgyptAir have begun repricing their services using a rate higher than the official USD:EGP benchmark set by the Central Bank of Egypt, Al Borsa claims. While rates have differed from ticket to ticket, pricing in EGP has lately implied a USD rate significantly higher than both the CBE rate and the parallel market rate, contends the newspaper. The national flag carrier is merely following standard industry practice, which has seen private sector companies reprice their goods based on the parallel market rate, said a source from an unnamed investment bank. The paper is suggesting, however, the move is indicative that devaluation is imminent and EgyptAir is getting a head start.

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