03:44 PM
Friday 13 March 2020
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I wrote – Shaima Hefzy:
The dollar continued to rise against the pound, during the past week’s trading, for the third week in a row, with repercussions of the emergence of the emerging Corona virus for a global epidemic.
The price of the dollar in the National Bank of Egypt yesterday, 15.65 pounds for purchase and 15.75 pounds for sale, compared to 15.58 pounds for purchase and 15.68 pounds for sale.
The pace of the rise of the foreign currency against the pound accelerated during the past week, as the dollar increased 7 piasters, compared to an increase of 3 piasters the previous week.
The dollar turned up in the last week of February, after a consecutive downward flight, thanks to attracting large foreign investment, in government debt instruments, which supported the price of the pound.
The dollar had recorded on February 20, its lowest price since the decision to liberalize the exchange in November 2016, according to central bank data at 15.52 for purchase and 15.62 for sale.
But he returned to the rise in the last week of the month, and continued to rise with the beginning of the current month of Ares, which was interpreted by bankers as a result of the exit of some foreign investor money from government debt instruments “treasury bonds and bonds.”
Bankers, with whom Masrawy spoke, said that the dollar increase due to the exit of these funds, as part of a wave of some foreign investment out of emerging markets, including Egypt, was affected by the repercussions of the spread of the new Corona virus on the markets and the global economy, and fears of exacerbating its economic effects on different countries.
An official source at the central bank told a former Masrawy that the reason for the rise of the dollar is the exit of some foreign investors from government debt instruments, as part of an exit wave from emerging markets, including Egypt, due to fears of the emergence of the emerging Corona virus, and its repercussions on global markets.
Despite the rise of the dollar, bankers played down fears of the impact of the exit of indirect investments from emerging markets, including Egypt, and said it was temporary and linked to controlling the Corona virus, and it is expected to occur with the entry of the summer when the temperature rises, they say.
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