Dollar and Egyptian pound (iStock)
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It was trading at levels ranging between 35 and 35.60 pounds
Speculation about the dollar has been renewed in the black exchange market in recent transactions. According to dealers, the parallel market has recorded intense activity since last Wednesday’s trading, so that the US green paper was traded at levels ranging between 35 and 35.60 pounds.
In the official market, the highest dollar exchange rate in Abu Dhabi Islamic Bank came at 30.90 pounds for purchase, compared to 30.95 pounds for sale. And in 22 banks led by the Commercial International Bank of Egypt and Al Baraka Bank of Egypt, the exchange rate of the dollar stabilized at 30.85 pounds for purchase, and 30.95 pounds for sale.
At the Central Bank of Egypt, the exchange rate of the dollar stabilized at 30.85 pounds for purchase, and 30.96 pounds for sale. The lowest exchange rate for the dollar came in 4 banks, led by the National Bank of Egypt and Banque Misr, at the level of 30.75 pounds for purchase, compared to 30.85 pounds for sale.
Dealers in the exchange market told Al-Arabiya.net that there was a delay by banks in issuing customs releases, which caused a large segment of importers to return to the parallel market, so that speculation flourished during recent transactions.
In the same vein; The Egyptian pound continued its decline in futures contracts compared to the official exchange rate at the end of last week. The pound fell in non-deliverable futures contracts for a period of 12 months, which are contracts that predict the exchange rate of the pound in the next 12 months, to a record level of 39.19 in last weekend’s trading.
In the credit market, the margin for the cost of insuring Egyptian debt rose to about 1,500 basis points, the second highest level ever.
Egypt has been witnessing a suffocating crisis regarding the provision of hard currency since the beginning of last year, which began with the flight of hot money from emerging markets, in addition to the decline in tourism sector revenues after the Corona pandemic and the imposition of precautionary measures.
It is scheduled that the Monetary Policy Committee of the Central Bank of Egypt will hold its second periodic meeting in 2023 at the end of this month, amid expectations of a trend to raise interest rates between 200 and 300 basis points, after the emergence of inflation data, which stands at the highest level in more than 5 years in present time.
According to official data, inflation recorded historical levels last February, according to figures revealed by the Central Statistical Organization and the Central Bank of Egypt. Inflation rose on an annual basis to 32.9%, the highest since the summer of 2017, while on a monthly basis it recorded a rate of 7.1%, the highest in 33 years.
As for core inflation, it jumped to 40.3% on an annual basis and 8.1% on a monthly basis in February, which are the highest rates ever in Egypt.
In statements on the sidelines of his meeting with Saudi investors, the Egyptian Minister of Finance, Dr. Mohamed Maait, said that Egypt aims to reach net foreign direct flows to $10 billion during the current fiscal year, compared to $8.9 billion last fiscal year.
Data from the Central Bank of Egypt indicate that economic growth rates recorded about 4.4% on an annual basis, and 2% on a quarterly basis, during the first quarter of the current fiscal year, with the support of the improvement in tourism, agriculture, and trade activities.