A few minutes after official trading in banks began, the dollar exchange rate jumped from the level of 23 pounds it reached at the end of trading last week, to a level above 24 pounds on the morning of trading on Sunday.
and fell The pound in Egypt Against the dollar, up 14.5% on Thursday after authorities announced their commitment to a permanently flexible exchange rate regime, coinciding with an initial deal to obtain a $ 3 billion loan from the Monetary Fund. international.
On Thursday, the Central Bank of Egypt decided to raise the interest rate by 200 basis points and float the Egyptian pound, after which the dollar jumped to higher levels.
In the foreign exchange market, the highest dollar exchange rate was recorded in 7 banks led by the Misr Iran Development Bank and the National Bank of Kuwait, at £ 24.10 for the purchase, versus £ 24.20 for the sale. .
In 4 banks led by the Arab International Banking Company “SAIP” and the Arab Investment Bank, the dollar exchange rate rose to the level of £ 24 for the purchase, compared to £ 24.10 for the sale.
In the National Bank of Egypt, the American green newspaper recorded a level of 23.50 pounds for the purchase and 23.60 pounds for the sale. Meanwhile, Banque Misr recorded a level of 23.15 pounds for the purchase, compared to 23.25 pounds for the sale.
The lowest dollar exchange rate at the Central Bank of Egypt was £ 22.86 for the purchase, compared with £ 23 for the sale.
The Central Bank of Egypt had announced, after an extraordinary meeting last Thursday, that it would adopt a flexible exchange rate system, with priority over the primary objective of achieving price stability. He explained that the exchange rate of the value of the Egyptian pound against other foreign currencies will change according to the forces of supply and demand.
The Central Bank of Egypt said it will work to build and develop the financial derivatives market with the aim of deepening the foreign exchange market and increasing foreign liquidity levels.
He stressed that the exchange rate will reflect the value of the pound against other currencies through the forces of supply and demand, under a flexible exchange system, with priority given to the central goal of achieving price stability. He stressed that reform measures have been taken in the light of the above to ensure macroeconomic stability and achieve sustainable and global economic growth.
During the meeting, the Monetary Policy Committee of the Central Bank of Egypt decided to raise the interest rate by 200 basis points, by 2%. It was also decided to increase the deposit and overnight lending rates and the main transaction price by 200 basis points to reach 13.25%, 14.25% and 13.75% respectively. It was also decided to increase the credit and discount rate by 200 basis points to 13.75%.
Read more: From 9 to 23 pounds … How has the price of the pound fallen against the dollar in 6 years?
In his commentary, economist Dr Hani Genena believes that the wave of decline in the pound will continue until mid-November as Egypt has not secured any funding so far and all that has been announced is the funding program. of 9 billion dollars.
In his speech to Al-Arabiya.net, he indicated that the Central Bank of Egypt has several options and is able to stop the dollar from rising, whether this is done by increasing interest rates by large percentages, but in this event, the local market will witness a difficult state of stagnation.
He explained that after the sterling devaluation decisions, the dollar exchange rate is currently at the level of £ 23, a fair level, and the dollar’s rally is expected to begin to decline by mid-November after the meeting. of the Board of Directors of the International Monetary Fund and approval of the financing for Egypt And the arrival of the first tranche of financing, followed by other donor institutions to start pumping what was agreed into the Egyptian market.
