US dollar continues to rise against the Egyptian pound

The exchange rate of the US dollar continued to rise against the Egyptian pound on Sunday. The Swiss franc, meanwhile, has risen by 50 cents since the 25 January revolution, pushed up by rising demand.

The price of the US dollar reached LE5.92, up from LE5.85 before 25 January, while the price of the Swiss franc rose to LE6.5.

Mohamed Gaber, the executive director of a currency exchange company, said the rise in the US dollar versus the Egyptian pound can be attributed to high demand by importers who fear the coming period will see even higher rises for the US dollar versus the Egyptian pound.

Gaber urged the Central Bank of Egypt to intervene to save the Egyptian pound, adding that he expects the value of one US dollar to exceed the barrier of LE6 by the end of this month.

Analysts say the value of the Egyptian pound has declined after two of the main pillars for demand — tourism and foreign investments — collapsed following massive protests that led to the ouster of ex-president Hosni Mubarak.

The Egyptian pound has dropped by 1.8 percent versus the dollar since the start of the 25 January Revolution.

According to official statistics, foreign reserves of the US dollar dropped by US$1.7 billion in February, down to US$33.3 billion.

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