The Egyptian pound experienced a significant rise against the US dollar on Thursday, with the greenback surpassing the 50-Egyptian pound mark for the first time in history. This development was reflected in the exchange rates of several local banks, according to data published on their official websites.
Several banks reported increased dollar prices. For instance, the National Bank of Egypt listed the buying rate at 49.93 Egyptian pounds and the selling rate at 50.03 Egyptian pounds, marking a 17-piastre increase. Similarly, Bank of Egypt recorded a buying rate of 49.85 Egyptian pounds and a selling rate of 50.03 Egyptian pounds, also up by 17 piastres.
Other banks, such as the Commercial International Bank (CIB), Cairo Bank, Abu Dhabi Islamic Bank, and HSBC, also witnessed substantial increases in their dollar exchange rates.
Sahar El-Damaty, former vice president of Bank of Egypt, attributed this surge to several factors, including increased demand due to the approaching Ramadan season and the government’s push to expand the industrial base, which requires importing raw materials. Additionally, year-end procedures to regulate foreign currency positions of some companies have contributed to the upward trend.
El-Damaty forecasted a potential decline in the dollar’s value during January and February 2025, with rates possibly ranging between 49 and 49.5 Egyptian pounds. However, she cautioned that the current surge in the dollar could lead to price increases for certain commodities.
Mohamed El-Etreby, CEO of the National Bank of Egypt and chairman of the Federation of Egyptian Banks, characterized the dollar’s fluctuations as indicative of a flexible exchange rate system in the domestic market. He emphasized that these movements do not represent a new devaluation of the Egyptian pound.
El-Etreby assured the public that the Egyptian banking system is robust and capable of meeting various foreign currency demands.
