The exchange rate of the US dollar price is witnessing a state of relative calm in Egyptian banks on Thursday, following the Central Bank of Egypt’s (CBE) decision to float the Egyptian pound.
Exchange rate on Thursday:
Central Bank of Egypt
- LE48.36 for purchase.
- LE48.46 for sale.
Banque Misr
- LE48.40 for purchase.
- LE48.52 for sale.
National Bank of Egypt
- LE48.40 for purchase.
- LE48.50 for sale.
CIB
- LE48.75 for purchase.
- LE48.85 for sale.
The Monetary Policy Committee of the CBE decided last week to allow the exchange rate to be determined according to market mechanisms.
In a statement, the committee explained that this move 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 also 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 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.
Edited translation from Al-Masry Al-Youm
