The price of the dollar rose against the Egyptian pound on Wednesday morning in government and private banks, following several new decisions issued by the Central Bank of Egypt (CBE) – the most important being the devaluation of the dollar exchange rate against the Egyptian pound.
Price of the US dollar on Thursday:
ALEXBANK
- LE49.4 for purchase
- LE49.5 for sale
Banque Misr
- LE49.1 for purchase
- LE49.3 for sale
National Bank of Egypt
- LE49.3 for purchase
- LE49.4 for sale
CIB
- LE49.80 for purchase
- LE49.80 for sale
The Monetary Policy Committee of the CBE decided on Wednesday to allow the exchange rate to be determined according to market mechanisms.
In a Wednesday statement, the committee explained that this moves come to protect the requirements of sustainable development, and showcase the CBE’s commitment to maintaining price stability in the medium term.
The CBE is also committed to continuing its efforts to move towards flexible inflation, it said, by continuing to target inflation as a nominal anchor for monetary policy while allowing the exchange rate to be determined according to market mechanisms.
“Unifying the exchange rate is a very important measure, as it contributes to eliminating the accumulation of foreign currency demand following the closure of the gap between the official and parallel market exchange rates, the committee explained.
The CBE on Wednesday raised interest rates by 600 basis points, equivalent to six percent, to reach 27.25 percent.
Egypt’s international bonds increased more than two cents following the CBE’s Wednesday decision.
The currency fell to new record lows, indicating the beginning of a long-awaited devaluation, according to Reuters.
Data from “Tradeweb” showed that longer-dated bonds made the biggest gains, with bonds due in 2047 rising 2.6 cents to 82.3 cents.
