The price of the US dollar rose at the beginning of trading on Tuesday by about a piaster, in most government and private banks operating in the local market, continuing a wave of rises for the dollar in Egypt that started on November 3 when the Central Bank of Egypt raised the interest rate by 200 basis points and floated the pound.
Prices on Tuesday:
- Suez Canal Bank
- LE24.51 for purchase
- LE 24.61 for sale
- Commercial International Bank
- LE24.55 for purchase
- LE24.61 for sale
- Banque Misr
- LE24.51 for purchase
- LE 24.56 for sale
- National Bank of Egypt
- LE24.51 for purchase
- LE 24.56 for sale
- Arab African Bank:
- LE24.40 for purchase
- LE24.47 for sale
CBE announces reforms
The CBE issued a statement, on November 3 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 CBE, on October 1, raised the required reserve ratio in banks from 14 percent to 18 percent.
It also confirmed in the periodic bulletin that the decision contributes to restricting the monetary policy it pursues.
In its meeting earlier in November 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.
Edited translation from Al-Masry Al-Youm
