Exchange Rate
The firm warned that continued unrest, particularly in Gaza and along the Israeli-Lebanese border, could perpetuate instability and investor concerns about Egypt’s economic outlook.
Prime Minister Madbouly emphasized that the private sector creates more job opportunities and encourages investment in the Egyptian economy.
The highest dollar rate on Wednesday reached LE 50.75 for buying and LE 50.85 for selling at Credit Agricole Egypt, MIDBANK, Abu Dhabi Islamic Bank Egypt, Abu Dhabi Commercial Bank Egypt, and Emirates NBD Egypt.
This intervention prevents currency traders from manipulating the dollar's price again. Monetary tightening is considered a crucial economic measure to bring about a form of equilibrium in the exchange rate.
Egyptian sources denied on Wednesday rumors that social protection decisions issued by president Abdel Fattah al Sisi aim to pave the way for a new liberalization of the exchange rate.
The government’s 2030 strategy included driving inflation down to 9.2 percent on average between 2024 and 2028, with a further decline to 5 percent by 2030
In a research note seen by the news outlet, Morgan Stanely suggested Egypt implement a “phased devaluation of the pound in the short term, rather than a complete floatation of the exchange rate” rather than a free float
“Egypt is working to restore investor confidence in an economy that was damaged by the repercussions of the Russian invasion of Ukraine,” according to Azour’s televised statements.
At the National Bank of Egypt (NBE) and Banque Misr, the dollar rate registered LE 29.90 for buying and LE 30.00 for selling.
The US dollar price started with a surge recording LE 32, and then decreased to LE 29.67 on Wednesday.
In the two largest banks in terms of assets and transactions, the National Bank of Egypt and Banque Misr, the exchange rate recorded LE 25.9 for purchase, and LE 25.95 for sale.
It stated in a recent report that Egypt has recently adopted a flexible exchange rate policy, describing it as the most appropriate one in the case of open economies that adopt an independent monetary policy.
Head of the Export Council for Engineering Industries Sherif al-Sayad made the statements in a TV interview Saturday.
Hossam El Din's statements are made amid an expected rise in prices due to the devaluation of the Egyptian pound on Thursday.
By 11 PM Cairo time, the benchmark EGX30 rose 4.32 percent, reaching levels of 11,009 points.
The overnight deposit rate, overnight lending rate, and the rate of the main operation were raised to 13.25 percent, 14.25 percent, and 13.75 percent, respectively. The discount rate was also kept raised to 13.75 percent.
The US dollar rate increased by 5 piasters for buying and selling.
The economics company also anticipated a 16 percent decrease by the end of 2024 to record 25 per dollar.
Hariri noted that a large group of customers untied their dollar-saved bank deposits and bought Egyptian pounds to benefit from the proceeds of the one-year certificates offered by the two state-owned banks.
The dollar rate registered LE 18.45 for buying and LE 18.55 for selling at the Commercial International Bank (CIB).
