U.S. one-hundred dollar bills are seen in this picture illustration, August 2, 2013 - REUTERS/Kim Hong-Ji/Illustration
CAIRO - 23 December 2021: The Egyptian pound remains stable in face of foreign currencies despite fluctuations in the world exchange market thanks to the successful economic reforms carried out by the Central Bank of Egypt with the support of the government, bankers told MENA.
Egypt's foreign cash reserves hit $40.909 billion by the end of November against $40.849 billion in the month before.
Egypt's foreign cash reserves have been on the rise since June 2020.
For the third consecutive month, the Egyptian pound exchange rate remains stable against the US dollar, recording an average of LE 15.64 for buying and LE 15.74 for selling.
The banking experts expected the Egyptian pound to preserve its stable performance within the coming period.
Remittances of Egyptians working abroad increased 1.9 percent from January to September 2021, recording $24 billion, said Mohamed Abdel Aal, a board member of a government bank.
The Egyptian pound is the second strongest-performing currency in emerging markets and has recorded gains for foreign investors pumping money in Egyptian government debt instruments, according to him.
The stability of the Egyptian pound will help the Central Bank of Egypt maintain inflation rate at 7 percent (±2) percentage points on average during the fourth quarter of 2022.
The Egyptian banker expected that interest rate will not be increased unless inflation rate increased to over 9 percent, an unlikely step both at the short and medium terms.
With more tourist flows, he expected that a strong impetus will be given to the Egyptian pound as it will help increase the country's cash reserves.