Dollar touches 18 EGP due to shortage at banks

CAIRO - 8 March 2017: The Egyptian pound weakened further Wednesday due to a dollar shortage at banks as importers' demand surges ahead of the Islamic holy month of Ramadan, scheduled to start in May.

Banks were selling the dollar at 17.55- 17.95 EGP, compared to 16-16.1 EGP, last week. Meanwhile, clients sold the dollar at 17.45- 17.85 EGP.

Economists at investment banks told Egypt Today this week that the pound will likely face further pressure during the next two months due to importers' increasing dollar demand ahead of Ramadan, when consumption usually edges up.

During February, the pound rebounded around 20 percent against the dollar, offsetting some of its 50 percent loss after its flotation in November.