The recent jump in the Egyptian pound's value against the US dollar was not caused by intervention on the part of the Central Bank of Egypt (CBE), CBE Vice President Hisham Ramez said on Saturday.
On Thursday, the value of the US dollar fell from LE5.77 to LE5.71.
“The dollar rose in value the week before last, but fell again late last week," said Ramez, "without the involvement of the CBE."
Ramez went on to explain that the Egyptian pound's rise in value had been driven by investors keen to purchase local currency in a bid to gain access to the Egyptian market. He added that there was no cause for concern as long as liquidity remained unaffected.
Ramez pointed out that the CBE had not been discreet about its intervention last year to curb speculation and “unhealthy market practices." The latest developments, he added, indicated that the local economy was gaining maturity and beginning to move according to market demand.
He went on to say that currency fluctuations represented a global phenomenon that mostly befell emerging economies like Egypt's. The trend, he noted, was generally caused by investors shifting their capital to these markets before hastily exiting them with the goal of making quick profits by taking advantage of favorable interest rates.
Translated from the Arabic Edition.
