Foreign Exchange
While the decision to float the currency brought short-term pressures, Capital Economics suggests the policy shift is now creating the conditions for more durable growth
The Egyptian pound strengthened sharply on Wednesday, hitting its highest exchange rate in nearly ten months as improved dollar inflows and stronger liquidity conditions lifted sentiment in the currency market.
These steps follow recent policy shifts by the Central Bank of Egypt (CBE), which has eased earlier limitations on the use of bank cards outside the country.
The Egyptian pound saw a notable rebound against the US dollar as the new trading week began, driven by a surge in dollar availability
The LE is currently LE 49.89 against the greenback, down from yesterday’s close of LE 49.93. (May 22, 3 PM).
On Saturday, the exchange rate for the USD fell to approximately LE 50.08 for buying, with selling prices ranging between LE 50.18 and LE 50.22 across most local banks.
By the end of the trading session, the dollar closed at LE 51.0564 for buying and LE 51.1944 for selling, up from LE 50.5296 and LE 50.6669 at the close of the previous week
The surge in foreign exchange inflows was largely fueled by an increase in foreign direct investment (FDI), which totaled $32.9 billion during the fiscal year.
The report highlights several crucial factors influencing Egypt's economic trajectory, with a particular focus on policy changes, inflation concerns, and the persistent challenges surrounding structural reforms
The LE is currently trading at approximately LE 49.14 to the dollar locally, deepening the losses from October and reflecting broader economic challenges
Egypt’s Administrative Control Authority succeeded in arresting an illegal formation specialized in foreign exchange trading
Foreign currencies inflows to banks operating in Egypt has risen to more than $75 billion since the flotation of the Egyptian Currency.
The dollar edged lower against a trade-weighted basket of currencies on Monday after posting its biggest weekly drop in three weeks as expectations of U.S.
China's yuan firmed against the U.S. dollar on Monday after the central bank guided the currency higher for the fifth straight day.
IMF's mission chief for Egypt said that raising fuel prices will free up resources for health and education .
The U.S. dollar exchange rate stabilized against the Egyptian pound in major banks on Thursday
Total flows of foreign exchange reserves reached $19.2 billion since the flotation of the Egyptian pound in November 2016, according to a Central Bank of Egypt (CBE) statement Tuesday.
