Dollar and Egyptian pound (iStock)
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The highest dollar exchange rate with Abu Dhabi Islamic Bank, at the level of 30.53 pounds for purchase
The US dollar recorded slight increases against the Egyptian pound during recent transactions, bringing the exchange rate of the US dollar at the Central Bank of Egypt to the level of 30.60 pounds.
Since December of last year, the exchange market in Egypt has been witnessing intensive moves by the Egyptian government and the Central Bank of Egypt, to control the largest crisis in the exchange market since the launch of economic reform programs at the beginning of November 2016.
Since last December, the government has been able to end the crisis of the accumulation of goods in the Egyptian ports, as it was able to release goods with a total value of close to 15 billion dollars, which caused the elimination of violent speculation that was occurring in the black market.
The highest dollar exchange rate at Abu Dhabi Islamic Bank came at 30.53 pounds for purchase, compared to 30.58 pounds for sale. And in 20 banks led by the Central Bank of Egypt, the exchange rate of the US green note rose to 30.48 pounds for purchase, compared to 30.58 pounds for sale.
The lowest dollar exchange rate was in 4 banks, led by the National Bank of Egypt and Banque Misr, at 30.38 pounds for purchase, compared to 30.48 pounds for sale.
In terms of major currencies, the exchange rate of the euro at the Central Bank recorded a level of 32.76 pounds for purchase, and 32.87 pounds for sale. In government-affiliated banks, the euro exchange rate stabilized at 32.40 pounds for purchase, compared to 32.77 pounds for sale.
While the pound sterling recorded an increase between 4 to 5 piasters, and settled in the Central Bank at 36.97 pounds for purchase, compared to 37.09 pounds for sale.
In the Arab world, the exchange rate of the Saudi riyal has stabilized at 8.08 pounds for purchase, and 8.12 pounds for sale. The exchange rate of the UAE dirham recorded a level of 8.27 pounds for purchase, and 8.29 pounds for sale. The Kuwaiti dinar exchange rate recorded a level of 96.07 pounds for purchase, compared to 99.75 pounds for sale.
A few days ago, Moody’s had announced the downgrade of the Egyptian government’s long-term foreign and local currency ratings to B3 from B2 and changed the outlook to stable from negative. This comes at a time when the World Bank and the International Monetary Fund are speaking positively about the Egyptian economy during the coming period.
However, last November, the Fitch Ratings agency had announced a reduction in its outlook for the Egyptian economy to negative due to what it described as increasing external weaknesses, and said that more pressures might lead to a downgrade of the country’s rating. Last month, Standard & Poor’s confirmed Egypt’s credit rating at B level with a stable outlook, and said that the new support packages from the International Monetary Fund and the Gulf states will enhance Egypt’s ability to cover its financing needs.
The first comment from the Egyptian government came from the Minister of Finance, Dr. Mohamed Moait, who indicated that the Egyptian government dealt positively with the concerns contained in the report. He pointed out that his country’s government has taken integrated financial and monetary measures and policies that contributed to the “Standard & Poor’s” establishment, during the last period, in consolidating its view of the Egyptian economy with a stable future outlook.
He explained that the Egyptian government is committed to economic reforms and the structural reform program supported by the International Monetary Fund with an agreement that extends to 48 months, which allows for economic growth in the coming years and enhances the ability of the Egyptian economy to meet the country’s external and internal needs.