The price of the dollar jumped today in Egypt, Tuesday, March 22, 2022, in commercial banks and exchange companies, after raising the interest rate.
The prices of the rest of the major and foreign currencies also jumped against the Egyptian pound, increasing their value by rates close to the increase in the value of the dollar in Egypt.
The Egyptian pound lost about 16% of its value against the dollar, at the end of Monday’s transactions, in the Central Bank of Egypt, and government and private banks in Egypt, after raising interest rates, and the Central Bank of Egypt correcting the price of the Egyptian pound.
The highest price of the dollar in Egypt
The average price of the dollar in Egypt, according to Central Bank of Egypt data, jumped to about 18.17 pounds for purchase, and 18.26 pounds for sale, compared to about 15.66 pounds for purchase, and 15.75 pounds for sale, in early trading on Monday.
According to a survey by “Al-Ain News” of prices in 29 banks, the average price of the dollar reached about 18.17 pounds for purchase, and 18.26 pounds for sale.
The highest price for the dollar came at about 18.18 pounds for purchase, and 18.27 pounds for sale, at the Ahli United Bank.
The price of 18.17 pounds for purchase, and 18.27 pounds for sale, dominated the dollar’s transactions in 12 banks, including Cairo, Alexandria, Al-Baraka, Credit Agricole, HSBC, and Arab African.
While the price of the dollar in Al-Ahly Bank and Egypt recorded about 18.15 pounds for purchase, and 18.25 pounds for sale, which is the lowest price for the dollar in Egypt.
Correcting the price of the Egyptian pound, losing 16%
Tarek Amer, Governor of the Central Bank of Egypt, said that the local currency, the pound, witnessed a correction, in Monday’s transactions, that will enhance its competitiveness and support exports, and that its price is in line with global and local developments.
The Egyptian pound fell, during Monday’s trading, about 16%, after the Egyptian currency remained under pressure for weeks, in light of foreign investors withdrawing billions of dollars from the Egyptian treasury market after the Russian invasion of Ukraine.
And the Central Bank of Egypt announced, in a statement yesterday, Monday, that it decided to raise the main interest rate by 100 basis points, bringing the overnight lending rate at 10.25% and the overnight deposit rate at 9.25%, in an exceptional meeting, after increasing global inflationary pressures that exacerbated Because of the war in Ukraine.
The Monetary Policy Committee was scheduled to meet on March 24.
The Central Bank of Egypt’s decision comes days after the US Central Bank announced that it had raised the main interest rate by a quarter of a percentage point, for the first time since 2018.
Amer said in a press conference that the Central Bank’s decisions to raise the interest rate aim to maintain foreign exchange liquidity and protect state resources in light of the economic pressures resulting from the Ukrainian war crisis.
He continued, “Egypt paid all its international obligations on time due to its strong foreign exchange reserves.”
“Inflation in Egypt is imported from abroad,” he added, referring to a recent wave of high prices that the country has been witnessing, which he described as a global phenomenon.
These inflationary pressures coincide with the approaching month of Ramadan, in which consumption rates generally increase.
Emerging markets in general, including Egypt, witnessed an exodus of foreign liquidity after the US Federal Reserve’s decision to raise interest rates last week.
According to Refinitiv data, the value of the Egyptian pound, in international currency markets, has been around 15.7 pounds since November 2020.
The Governor of the Central Bank of Egypt stressed that the decisions of the Monetary Policy Committee of the Bank, after the outbreak of the war in Ukraine, are aimed at maintaining the confidence of foreign investors and international financial markets in order to facilitate Egypt’s ways to meet its financing requirements.
The price of the euro and the pound sterling today in Egypt
The average price of the European euro, according to the Central Bank of Egypt website, jumped to about 20.05 pounds for purchase, and 20.16 pounds for sale, compared to about 17.31 pounds for purchase, and 17.42 pounds for sale, in early trading yesterday, Monday.
The average price of the pound sterling, in the banking market, according to the Central Bank of Egypt, rose to about 23.88 pounds for purchase, and 24.01 pounds for sale, compared to about 20.64 pounds for purchase, and 20.77 pounds for sale, in early trading on Monday.
The prices of the riyal, dirham and dinar today in Egypt
The average price of the Saudi riyal, according to the Central Bank of Egypt website, increased to about 4.84 pounds for purchase, and 4.87 pounds for sale, compared to about 4.17 pounds for purchase, and 4.20 pounds for sale, in early trading yesterday, Monday.
The average price of the UAE dirham, in the banking market, according to the Central Bank of Egypt, also increased to about 4.94 pounds for purchase, and 4.97 pounds for sale, compared to about 4.26 pounds for purchase, and 4.29 pounds for sale, in early trading yesterday, Monday.
The average price of the Kuwaiti dinar also jumped, according to the Central Bank of Egypt website, to record about 59.72 pounds for purchase, and 60.19 pounds for sale, compared to about 51.53 pounds for purchase, and 51.87 pounds for sale, in early trading yesterday, Monday.