Egyptian pound dollar – expressive
Egyptian Pound
Constant pressure on the black market
The exchange rate of the US dollar recorded new highs against the Egyptian pound in banks, but it stabilized with the Central Bank.
The highest dollar exchange rate at Abu Dhabi Islamic Bank came at 30.63 pounds for purchase, compared to 30.68 pounds for sale. With 24 banks led by the Central Bank of Egypt, the exchange rate of the US green note stabilized at 30.58 pounds for purchase, compared to 30.68 pounds for sale.
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The lowest dollar exchange rate was in 4 banks, led by the National Bank of Egypt and Banque Misr, at 30.48 pounds for purchase, compared to 30.58 pounds for sale.
On the other hand, pressure continues on the black market, which is suffering greatly due to the collapse of demand for hard currencies, especially the dollar, by major traders and recovery companies.
The past days witnessed a major breakthrough in the file of goods stacked in Egyptian ports, as the crisis is approaching its end, according to official data and figures.
Since March of last year, the exchange market in Egypt has been witnessing intensive moves by the Egyptian government and the Central Bank of Egypt, to control the largest crisis in the exchange market since the launch of economic reform programs at the beginning of November 2016.
Starting from last December, the government was able to end the crisis of the accumulation of goods in the Egyptian ports, as it was able, in cooperation with the Central Bank, to release goods with a total value ranging between 17 to 18 billion dollars, which caused the elimination of violent speculation that was occurring in the black market.
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The gap between the exchange rates in the official and black markets reached its peak during the last week of last year, when the exchange rate of the dollar outside the official market recorded a level of 38 pounds, but with the central bank’s moves in the file of ending the crisis of stacked goods and its closeness to ending the crisis, it collapsed. The exchange rate of the dollar in the parallel market to a level not exceeding 31 pounds at the present time, compared to about 30.62 pounds in the official market.
Meanwhile, the Ministry of Finance succeeded in completing its first sukuk issuance on the London Stock Exchange this morning, according to what it announced in a statement. Orders oversubscribed for the $1.5 billion issue by four times, reducing the final yield to 10.875% compared to the initial price guide of 11.625%.
According to a statement by the Ministry of Finance, about 250 international investors have subscribed to the sukuk, which has attracted new segments of investors in Egyptian debt from global markets, including the Gulf, East Asia, the United States and Europe. This issuance is part of an international program of sovereign sukuk issuances for the next several years, worth $5 billion, to be offered by the government on the London Stock Exchange.
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