Officially.. the price of the dollar in the Central Bank of Egypt jumps to 24.5 pounds

The exchange rate of the dollar rose at the Central Bank of Egypt to a new high At 24.50 pounds for sale, compared to about 24.41 pounds for purchase.

The exchange market in Egypt has witnessed major changes since the beginning of this year. After the first flotation announced by the Central Bank of Egypt at its extraordinary meeting during the month of March, the Egyptian currency lost about 24% of its value, after the dollar exchange rate jumped from the level of 15.74 pounds to about 19.64 pounds at the end of last October.

read more: How much is the fair price of the Egyptian pound against the dollar?

However, since the second flotation at the end of October until now, the Egyptian currency has lost about 24.7% of its value, after the exchange rate of the dollar rose from the level of 19.64 pounds, to about 24.50 pounds at the present time. With regard to the total losses of the Egyptian pound since last March until today, the Egyptian currency lost about 55.6% of its value against the dollar, after the US green note rose by about 8.76 pounds.

The highest exchange rate for the dollar in banks came with the Egyptian Gulf Bank and Al Ahli Kuwaiti Bank at the level of 24.45 pounds for purchase, compared to about 24.48 pounds for sale. In 8 banks led by the Commercial International Bank – Egypt and Al-Mashreq, the US green note recorded a level of 24.43 pounds for purchase, compared to 24.48 pounds for sale.

And in 15 banks led by the National Bank of Egypt and Banque Misr, the exchange rate of the dollar rose to the level of 24.38 pounds for purchase, compared to about 24.48 pounds for sale. The lowest dollar exchange rate came at Al Baraka Bank – Egypt, at 24.36 pounds for purchase, compared to about 24.46 pounds for sale.

The Central Bank of Egypt began implementing the flexible or managed float policy since the end of last October, as part of an attempt to control the exchange market. However, until now, speculation is taking place on the dollar in the parallel market, although its pace has decreased over the past days.

read more: An expert for Al-Arabiya: Core inflation in Egypt may reach 25%

In parallel with the devaluation of the Egyptian pound, the Central Bank of Egypt announced the cancellation of dealing with documentary credits with regard to imports, especially after the accumulation of goods in Egyptian ports, which caused a shortage of a number of goods. Documentary credits are scheduled to expire at the end of next December, according to the instructions of the Central Bank of Egypt.

A few days ago, the agency, “Fitch” for credit rating, had announced the amendment of its outlook on the Egyptian economy from “stable” to “negative”, attributing this to the “deterioration” of the country’s external liquidity situation. The agency maintained the country’s credit rating at (B+) level, attributing this to strong economic growth and “strong international support” from Gulf allies and international partners.

And it warned that it may downgrade the rating in the coming months if external financing pressures persist or the government is unable to reduce the deficit and reduce the debt-to-GDP ratio.

While the reduction reflects “the deterioration of the external liquidity situation and the decline in prospects for access to the bond market, which makes the country vulnerable to adverse global conditions at a time of high current account deficit and external debt maturities,” Fitch suggested, adjusting its outlook for the Egyptian economy, to a deterioration in the situation Liquidity in foreign currency and the low prospects for Egypt’s access to the bond market, which leaves it grappling with the consequences of global events at a time when its current account is running a high deficit and it is waiting for it to pay off external debts.

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