The exchange rate of the US dollar against the Egyptian pound stabilized on Friday after the last decline recorded on Thursday, as weekly trading closed on a downward trend.
Here are the dollar exchange rates at some of the major Egyptian banks on Friday.
- Suez Canal Bank: Buying for 47.95 Egyptian Pounds (EGP) and Selling for 48.05 EGP
- United Bank: Buying for 47.95 EGP and Selling for 48.05 EGP
- National Bank of Egypt: Buying for 47.94 EGP and Selling for 48.04 EGP
- Bank Misr: Buying for 47.94 EGP and Selling for 48.04 EGP
- Commercial International Bank: Buying for 47.94 EGP and Selling for 48.04 EGP
- Bank of Alexandria: Buying for 47.94 EGP and Selling for 48.04 EGP
Devaluation Efforts
To address the shortage and stabilize the economy, the Central Bank of Egypt devalued the pound several times in 2023. This made Egyptian goods cheaper for export, potentially attracting foreign investment.
However, it also increased the cost of imported goods, including essentials like food and fuel, leading to inflation.
IMF Loan and Reforms
Egypt secured a loan from the International Monetary Fund (IMF) in 2023 with the condition of implementing economic reforms.
These reforms included a move towards a more flexible exchange rate system, allowing the market to determine the value of the dollar to some extent.
The Recent Dollar Decline
The recent decline in the dollar’s value against the Egyptian pound observed on July 5 could be due to several factors:
Improved Economic Outlook: There might be a perceived improvement in Egypt’s economic situation, potentially due to some success with the IMF reforms or increased foreign investment. This could lead to more confidence in the Egyptian pound, causing its value to rise.
Temporary Fluctuation: It’s also possible that the decline is a temporary fluctuation within the new, more flexible exchange rate system.
