The price of the dollar varied today in Egypt during trading on the morning of Tuesday, September 27, 2022, but the state of uncertainty remains regarding the pound.
The pound fell by two new piasters against the dollar yesterday, Monday, September 26, to approach its lowest level ever.
The lowest price of the Egyptian pound against the dollar was at 19.56 pounds on December 20, 2016, following the decision to float the Egyptian pound in November 2016.
The Egyptian pound had lost 5 piasters in one day last Wednesday, before the Central Bank of Egypt’s decision to fix interest rates and keep them unchanged.
What is the price of the dollar today in Egyptian banks?
The price of the dollar varied today in Egypt at the Central Bank of Egypt, stable at 19.44 pounds for purchase, and rising to 19.55 pounds for sale, compared to 19.44 pounds for purchase, and 19.51 pounds for sale yesterday, according to the CBE bulletin “cbe.org.eg”.
The price of the dollar today in Egypt at the National Bank of Egypt rose to about 19.46 pounds for purchase, and 19.52 pounds for sale, compared to 19.44 pounds for purchase, and 19.50 pounds for sale yesterday. The same price was repeated at Banque Misr.
At the Commercial International Bank (CIB), the dollar rose today to 19.48 pounds for purchase, and 19.54 pounds for sale.
Has the pound crossed the red line?
The pound’s losses against the dollar have increased since the new Central Egyptian Governor, Hassan Abdullah, assumed the presidency of the bank on August 18, 2022, succeeding the resigned governor, Tariq Amer, causing the pound to lose about 40 piasters in total.
Hassan Abdullah assumed his duties at that time, when the pound was trading near levels of 19.1984 pounds to the dollar, while today it is trading near levels of 19.55 pounds to the dollar.
While the pound has fallen since the decision to liberalize exchange rates, or as described by the former central governor at the time, the correction of exchange rates, increasing by 3.5 pounds, or the equivalent of a 23% decline.
December 20, 2016 The dollar exchange rate was 19.5605, the highest official ever.
March 20, 2022, the dollar exchange rate against the pound recorded levels of 15.7786 pounds to the dollar.
March 21, 2022 witnessed the liberalization of the exchange rate, causing the pound to fall against the dollar to levels of 18.2884.
August 18, 2022, the resignation of the former governor and the appointment of Hassan Abdullah, the dollar exchange rate recorded 19.1984 levels.
Is there a black market for dollars in Egypt?
Since the decisions of the Central Bank of Egypt to float the pound in recent times, there is no longer a black market for the dollar in Egypt.
However, Hani Genena, a banking expert, said in statements to “Al-Ain News” that the value of the dollar against the pound in the parallel market ranges between 21 and 22 pounds, and it is normal for it to reach this level.
The banking expert added that the Central Bank is seeking exchange rate flexibility, to facilitate procedures for attracting long-term investments and obtaining an International Monetary Fund loan.
He continued: The pound may face a decline against other currencies.
The Central Bank of Egypt took several decisions to stop the black market for dollars, but amid the pressures of the foreign exchange crisis, the black market for dollars appeared in Egypt again.
In the same context, dealers confirmed Geneina’s talk, saying: There are some traders who obtain dollars from non-bank channels at a price exceeding 21 pounds per dollar.
A source in the Chambers of Commerce in Cairo revealed that the dollar was trading at 21.5 pounds outside banks, despite the facilities announced by the Central Bank of Egypt to obtain dollars from banks.
The source, who asked not to be named, added that gold dealers in Egypt also price the dollar at 22 pounds, and this is clearly evident in the great discrepancy between the global price of gold and its prices in Egypt.
Meanwhile, dealers with some foreign embassies in Egypt revealed that the price at which the costs of travel procedures within those embassies are calculated is 21.5 pounds to the dollar.
Why is the Egyptian pound depreciating?
Recent weeks have witnessed a decline in the price of the Egyptian pound, as the losses of the Egyptian pound have jumped against the dollar since the new Egyptian Central Governor, Hassan Abdullah, took over the presidency of the bank on August 18, 2022, succeeding the resigned governor, Tariq Amer, to lose the pound 27 piasters in total.
While the pound has fallen since the decision to liberalize the exchange rates, or as described by the former central governor at the time, the correction of exchange rates, increasing by 3.5 pounds, or the equivalent of a decline in the range of 22.5%.
Economists rely on inflation as the strongest reasons for the decline in the value of the Egyptian pound against the US dollar, as well as the slight decline in Egyptian remittances from abroad during August.
On the other hand, a recent report by Standard Chartered Bank expected the bank to expect an agreement between Egypt and the International Monetary Fund on obtaining a loan of $6 billion. Earlier, the Egyptian government denied that the Fund’s loan would reach $15 billion, while government sources confirmed that the loan would range between Between 3 to 5 billion dollars.
The bank also expected that the gradual reduction of the local currency would continue to levels near 21 pounds to the dollar before the end of this year, in line with the fund’s requirements.
The Egyptian cash reserve declined for the fourth month in a row, to record 33.141 billion dollars at the end of last August, with a value of 1.3 million dollars from the previous month.
Despite this, Egypt bucked the wave of interest rate hikes that the region is witnessing after the US Federal Reserve increased interest rates. Because it wants to reduce the inflation rate, according to Aya Zuhair, deputy head of research at Zila Capital.