The currencies rose against the Egyptian pound, especially the Kuwaiti dinar, after the dollar’s recent appreciation against the pound today.
The Kuwaiti dinar was priced at 73.96 when buying and 81.27 when selling, the Saudi rial was 6.39 when buying and 6.44 when selling against the Egyptian pound, and the price of the UAE dirham was 6.44 when compared to the Egyptian pound. when buying and 6.55 when selling.
In terms of foreign exchange, the price of the euro against the Egyptian pound recorded 23.98 buys and 24.12 sells, the price of the dollar recorded 23.9 buys and 24.15 sells, and the price of the pound sterling recorded 27.95 buys and 28.1 sells. .
The increase in the price of the dollar occurred after the value of the Egyptian pound fell against foreign currencies, after the decision of the Central Bank of Egypt to raise the interest rate in banks by 2%, which led to a significant increase in the dollar.
On Thursday, the Central Bank of Egypt decided to raise interest rates by 200 points, equivalent to 2%, at an extraordinary meeting.
This was done in order to support the goal of price stability in the medium term, the Monetary Policy Committee, at its extraordinary meeting, decided to raise overnight deposit and lending rates, as well as the price of the Central Bank’s main operation by 200 basis points, in order to reach 13.25%, 14.25% and 13.75% respectively.
Rising global and local prices are expected to lead to higher headline inflation than the Central Bank’s target of 7% (± 2 percentage points) on average during the fourth quarter of 2022. The Committee stresses that the objective of raising interest rates is to contain pressure from demand-side inflation, strong domestic liquidity growth, inflationary expectations and spillovers from supply shocks.
Source: Al-Masri Al-Youm.