In January 2001, the Egyptian government decided to restore market stability and confidence, by announcing a new central exchange rate of EGP 3.85 USD1.00 and introducing the “crawling peg” system. Under a crawling peg, the government reassesses the value at which it sets its exchange rate periodically and then changes the rate after each assessment. This was encouraged by a continuous dollar shortage and investor, doubts about the credibility of the government's exchange rate management.