© Reuters.
Investing.com – Prices on the black market continue to rise, recording today about 48.78 pounds to the dollar for purchase and 48.53 pounds to the dollar for sale.
Tomorrow, the central bank will issue $1.6 billion in one-year dollar treasury bills.
Egypt needs between 8-10 billion US dollars to confront the foreign currency shortage and the devaluation of the pound in the coming months, according to EFG Hermes chief economic analyst, Mohamed Abu Basha, in statements to Al Arabiya Business.
The EFG Hermes (EGX:) report indicates that officially devaluing the Egyptian pound will bring a foreign exchange inflow of between $12 to $14 billion to the official market.
Meanwhile, Abu Basha expected in his research report that the dollar would reach the level of 40 pounds per dollar as the official rate, noting that this price serves as “a final stability point for the pound when the foreign exchange market stabilizes.”
The report also notes that “the process of adjusting the pound’s exchange rate is about to end.” This is due to the accumulation of foreign currencies within the pillars of the Egyptian economy, especially in the form of corporate deposits in foreign currencies, which rose by $5 billion in the eighteen months until August, reaching a historical high of $17.5 billion. Adding that there is a real improvement in the stability of the exchange rate in the parallel market from May to mid-October. He believes we have reached a turning point where a solution can be reached.
Commercial International Bank certificates of deposit
The London-listed securities of the largest bank listed on the Egyptian Stock Exchange indicate a record high for the dollar against the Egyptian pound, according to arbitrage models.
Arbitrage is the process of buying and selling the same asset at the same time from different exchanges or platforms with the aim of exploiting the difference in prices. The quantity of the underlying asset bought and sold must be the same, while only the difference in prices is recorded as a net return from the deal.
Certificates of deposit of the Commercial International Bank – Egypt (LON:COMIq) are being traded during these moments of today’s trading on the London Stock Exchange (LON:) (LON:LSEG) at $1.26, while the shares of the Commercial International Bank (Egypt) (EGX:) closed (EGX:COMI) on the Cairo Stock Exchange at the level of 71.16 Egyptian pounds, which indicates that the dollar is denominated at approximately 56.47 pounds per dollar, according to data available on the Investing website.
The price fell from 58 pounds to the dollar on Friday to 56.47 pounds to the dollar today, with Commercial International Bank shares falling by more than 2%.
It rose to 1,531 points, according to Investing.com data
2023-11-12 15:06:00
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