The price of the dollar on Wednesday 8-4-2020

The price of the US dollar against the pound witnessed stability in the early morning dealings in Egyptian banks today, Wednesday, 4-4-2020, at the same levels as the past days.

The price of the dollar had risen after the exit of part of the money of foreign investors investing in government debt instruments in Egypt, due to the fear of the spread of the new Corona virus “Covid-19” and its effects, and analysts expected foreign exchange flows to decrease from tourism, especially after the decision to stop flights.

In spite of this, economic analysts ruled out that the slight rise in the dollar will be the beginning of declines for the Egyptian pound, after the crisis of the outbreak of the new Corona virus.

In addition, the movement of buying and selling on the dollar in exchange firms was completely stopped due to the suspension of travel, and the decline in imports and exports due to the precautionary measures related to the virus.

For his part, the Governor of the Central Bank made clear that Egypt possesses 45 billion dollars in strong foreign cash reserves, while it needs only 25 billion dollars, which enables the Central Bank to implement its plans and stop any exceeded in the exchange market, expecting another decrease in the value of the pound against the dollar during Next period.

Also, US media outlets published the decline of the dollar against the yen and the euro, today, and are expected to show a rise in jobless claims as companies lay off workers due to the rapid spread of the Corona virus.

Economists expect the exchange rate to continue to rise The dollar Opposite The pound Egyptian with the spread of Corona virus “Covid-19” globally, especially with the suspension of imports from China after the spread of Corona, with the decline in export rates due to the suspension of some countries for import to combat the spread of the virus.

Economists have stated that there are several reasons behind the low price of the US dollar against the Egyptian pound, including an increase in foreign flows in domestic debt instruments, in light of the real interest in addition to the stability of the Egyptian economy, along with incomes from tourism, exports and remittances from Egyptians abroad.

Economists also pointed out that the improvement in the Egyptian economy, the increase in oil exports following the increase in Egypt’s production of natural gas and oil, and the confidence of foreign investors in the performance of the Egyptian economy.

It should be noted that the price of the dollar suffered significant losses during the month of January, after losing 26 piasters, and witnessed its biggest loss against the Egyptian pound during last September.

The price of the dollar today