The exchange rate between the US dollar and the Egyptian pound remained stable during the bank holiday on Friday, after rising during Thursday’s trading following the Central Bank of Egypt’s decision to fix the overnight deposit and lending rates at 27.25 percent and 28.25 percent, respectively.
The dollar had initially appreciated against the pound on Thursday following the Central Bank’s decision, but it seems to have settled back to its previous level during the bank holiday. This suggests that the market is still digesting the implications of the rate decision and that it may take some time for the full impact to be felt.
Exchange rates for the US Dollar against the Egyptian pound in major Egyptian banks
- Central Bank of Egypt
- Buying Price: LE 48.18
- Selling Price: LE 48.32
- National Bank of Egypt
- Buying Price: LE 48.20
- Selling Price: LE 48.30
- Commercial International Bank
- Buying Price: LE 48.20
- Selling Price: LE 48.30
- Bank Misr
- Buying Price: LE 48.20
- Selling Price: LE 48.30
- Alexandria Bank
- Buying Price: LE 48.21
- Selling Price: LE 48.31
- Baraka Bank
- Buying Price: LE 48.20
- Selling Price: LE 48.30
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.
