Banking expert, Mohamed Abdel-Aal said that the rise in the dollar exchange rate on Monday at some banks is due to several internal and external factors, in addition to seasonal variables related to the end of each year.
Reasons for the rise
Abdel-Aal said that one of the main reasons for the rise in the dollar exchange rate in banks is the entry and exit of foreign holdings in treasury bills, in addition to other banks closing and settling their financial positions at the end of each year, leading to additional pressures on the dollar price.
Today’s dollar price
The banking expert noted other external factors, primarily the strength and rise in the US dollar price within global markets against major currencies, which naturally leads to an increase in its price against the pound – even if there are no other problems.
Exchange rate flexibility policy
Abdel-Aal confirmed that the decline of the Egyptian pound against the US dollar reflects the success of the exchange rate flexibility policy adopted by the Central Bank of Egypt.
Global US dollar price
The banking expert added that the continuation of global geopolitical tensions greatly impacts the dollar price.
“Whoever believes that these tensions have subsided is inaccurate, as their impact is still clear and accompanied by a state of anxiety and tension that puts pressure on the dollar price,” he explained.
Dollar price expectations in 2025
Regarding the US dollar price expectations in the near future, Abdel-Aal indicated that expectations state that the dollar will remain in the range of LE 50 to LE 50.75 until the end of this month.
With the first half of the new year, the price may move in a range between LE51-52, he added, but will not rise above that as a result of the entry of new cash flows.
Edited translation from Al-Masry Al-Youm
