CAIRO - 11 January 2023: The price of the US dollar has recorded the highest during Wednesday trading, exceeding LE 32 against the Egyptian pound, and then dropped during the end of the trading session by around LE 2.25, recording LE29.75.
This come as a result of the recent decision by the Central Bank of Egypt to float the pound on November 3.
While the Central Bank leaves prices setting according to the mechanisms of supply and demand, without any intervention to support the value of the local currency.
The dollar prices, according to the latest update in banks, exceeded levels of 31 pounds in a number of banks, including Abu Dhabi Islamic Bank and Al-Mashreq Bank, Credit Agricole Bank, the National Bank of Egypt, Abu Dhabi Commercial Bank, Al-Ahly United Bank, and Faisal Islamic Bank.
The price during closing trading session:
In National Bank of Egypt and Egypt Banks:
LE 29.75 for purchase
LE 29.8 for sale.
The price during mid-trading session:
In National Bank of Egypt and Egypt Banks:
LE 32 for purchase
LE 32.05 for sale
International Monetary Fund
The International Monetary Fund had confirmed that the Central Bank of Egypt would be committed to allowing the exchange rate to reflect the conditions of supply and demand for foreign exchange.
And now the dollar prices are exposed against the Egyptian pound; to determine their prices according to the mechanisms of supply and demand, which leads to their dramatic surge, as banks are currently suffering from a shortage of hard currency, and are trying to attract inflows from outside the banking sector by lowering the price of the pound against the dollar.
The “fund” indicated that the central bank may sometimes intervene in times of excessive volatility in exchange rates, without resorting to using the net foreign assets of banks with the aim of stabilizing the exchange rate of the pound.
The Central Bank has cash reserves that exceed $34 billion, as it announced an increase in net cash reserves of foreign currencies by about $500 million at the end of December, to reach about $34 billion by the end of December 2022, compared to about $33.5 billion during the previous November.
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