The price of the US dollar rose on Sunday evening to reach its highest level in 2022 so far breaking the barrier of LE 24, after witnessing its last rise on Thursday.
The recent rise in the dollar’s price came as a result of the Central Bank of Egypt’s decisions to increase the interest rate to 200 basis points, and to float the Egyptian pound.
The price of the dollar against the Egyptian pound, on Monday morning was as follows in Egyptian banks:
National Bank of Egypt
Sale LE 22.95
Banque du Caire
Commercial International Bank
The Central Bank of Egypt (CBE) issued a statement, on Thursday morning, announcing reform measures to ensure macroeconomic stability and achieve sustainable and comprehensive economic growth, floating the Egyptian pound.
Egypt first devalued its currency by 48 percent in 2016, allowing it to float freely in order to meet a key demand by the International Monetary Fund to secure a three-year US$12 billion loan.
The CBE announced the devaluation of the Egyptian pound for the second time in March by nearly 17 percent.
The Central Bank of Egypt, on Saturday October 1, raised the required reserve ratio in banks from 14 percent to 18 percent.
The CBE confirmed in the periodic bulletin that the decision contributes to restricting the monetary policy it pursues.
In its meeting on Thursday the Monetary Policy Committee of the CBE kept the overnight deposit and lending rates and the bank’s main operation rate at 25.11 percent, 25.12 percent and 75.11 percent, respectively.
The credit and discount rate was also kept at 75.11 percent.
The bank also opted to increase the percentage of cash reserves that banks are obligated to maintain with CBE to become 18 percent instead of 14 percent.