The dollar exchange rate at the Central Bank of Egypt has risen to a new level record at 24.50 pounds for sale, compared to around 24.41 pounds for purchase.
The foreign exchange market in Egypt has witnessed major changes since the beginning of the quest year. After the first quotation announced by the Central Bank of Egypt in the extraordinary meeting in March, the Egyptian currency lost about 24% of its value after the dollar exchange rate jumped from 15.74 pounds to about 19.64 pounds at the end of last October.
But from the second listing at the end of October until today, the Egyptian currency has lost around 24.7% of its value after the dollar’s exchange rate rose from 19.64 pounds to around 24.50. current pounds. Regarding the total losses of the Egyptian pound since last March to date, the Egyptian currency has lost about 55.6% of its value against the dollar after the US Green Paper rose by about 8.76 pounds.
The highest dollar exchange rate in banks with the Egyptian Gulf Bank and Al-Ahly Kuwaiti Bank was £ 24.45 for the purchase, compared to £ 24.48 for sale. In 8 banks led by Commercial International Bank – Egypt and Mashreq, the US Green Paper recorded a purchase level of 24.43 pounds, compared to 24.48 pounds in sales.
In 15 banks led by the National Bank of Egypt and Banque Misr, the dollar exchange rate rose to £ 24.38 for the purchase, compared to around £ 24.48 for sale. The lowest dollar exchange rate at Al Baraka Bank – Egypt was £ 24.36 for the purchase, compared to £ 24.46 for the sale.
The Central Bank of Egypt began implementing a flexible or managed float policy at the end of last October to control the foreign exchange market. But so far, they are in speculation on the dollar in the parallel market, although its pace has recently slowed.
In parallel with the devaluation of the Egyptian pound, the Central Bank of Egypt has announced the cancellation of the treatment of documentary credits related to imports, especially after the accumulation of goods in Egyptian ports, which has caused a shortage of some goods. The expiry of the documentary credits is scheduled for the end of next December, according to the indications of the Central Bank of Egypt.
A few days ago, the rating agency “Fitch” announced the change of its future outlook for the Egyptian economy from “stable” to “negative” due to the “worsening” of the country’s external liquidity position. The agency kept the country’s rating at (B +) and attributed it to strong economic growth and “strong international support” from Gulf allies and international companies.
And he warned it could downgrade the rating in the coming months if external funding pressures persist or the government isn’t able to reduce the deficit and the debt ratio.
Since the reduction reflects “the deterioration of the external liquidity position and the decline in the prospects for access to the bond market, which makes the country vulnerable to adverse global conditions in a time of high current account deficit and external debt maturities, ”Fitch suggested, changing outlook future for the Egyptian economy, to the deterioration of the state of the Egyptian economy. Liquidity in foreign currency and Egypt’s poor bond market prospects leave it grappling with the aftermath of global events in one moment in whose current account is running a high deficit and is in waiting for the repayment of the foreign debt.
Read More About: Business News