The dollar exchange rate crossed the 19-pound barrier for the first time since 2017 (Getty)
witnessed money markets Misty fluctuations affected by the continuous decline in reserve balances from foreign exchange And news of a trend US central bank To increase the dollar interest rates by 75 basis points next month, following raising them for the fourth time, at the beginning of this month, to 2.5%, and the failure to reach a final agreement between Egypt andInternational Monetary Fund About the third program for economic reform.
And the price fell pound Against the dollar, the euro, and the major currencies, at an average rate of 5 piasters today, Monday, and it continues its downward trajectory, which led to it losing 17 piasters once morest the major currencies last week, following crossing the 19-pound barrier for the first time since 2017.
The price of the dollar, following midday trading on Monday, in public and foreign banks, ranged between 19.1 pounds for purchase and 19.22 for sale, while the euro rose to 19.56 pounds for sale and 19.42 for purchase. central bank To 19.79 for selling and 19.15 for buying, the euro reached 19.42 for buying and 19.51 for selling.
The performance of the main index in the stock market declined by 0.57%, following witnessing a slight increase at the beginning of this week.
Gold prices witnessed a sudden drop in all caliber shops, amounting to 6 pounds, where 24 karat recorded the amount of 1225 pounds per gram, and 22 karat the amount of 1123 pounds, and 21 karat the most traded in the local market, 1072 pounds, and 18 karat the amount of 919 pounds, and 14 karat regarding 714 pounds.
An official source in the Chamber of Gold Works confirmed that the supply of gold was not affected by the decline in the pound, following the state stopped importing and exporting gold, pointing out that prices were affected by news of the Federal Reserve’s intention to raise interest on the dollar, which prompts more dealers in the gold market to buy and invest in The green currency, the competition for gold as a reserve currency in the financial markets, with the expectation of a recession in the industries related to gold ore globally.
Despite the presence of security instructions that prevented the publication of the Central Bank’s statement regarding the decline in cash reserve balances in the official newspapers issued on Monday morning, the reserve lost regarding 232 million dollars during last July, to reach 33.134 billion dollars, compared to 33.375 billion dollars in June. The past, according to central bank data, has led to confusion in the markets.
The search for dollars on the black market prompted importers of basic commodities to demand that the state recognize the legitimacy of their carrying foreign currency of unknown source, and present it to banks to pay the value of imports from abroad, following importers’ requests accumulated before the Central Bank and local banks, without specifying a time limit to meet their urgent needs.
Sources pointed out that the continuous decline in the monetary reserve that has been going on for months, with the failure to reach an agreement with the IMF to allow the government to resort to international financial institutions to obtain new loans, and in light of the current unattractiveness of selling Egyptian bonds in international markets, the demand for the dollar is rising in Black market.
The sources pointed out that the price difference on the black market from the official prices rose to one pound this week, which confirms the presence of more demand and less dollar supply in the markets.
The sources pointed out that the Central Bank’s report, which was issued earlier this week, on the performance of the balance of payments during 9 months of the last fiscal year, between July and March 2021-2022, showed the government’s suffering from a severe shortage of foreign exchange liquidity that began to unfold despite Attempts to hide it from the public, throughout the past year.
The geopolitical shifts with the outbreak of the Russian war in Ukraine caused a mass exodus of foreign investors from emerging markets, led by Egypt, which led to the exit of regarding $14.75 billion from the local market, during the period from January to last March.
The sources expected an increase in the foreign currency deficit, and the government’s inability to cover the deep gap in external financing, in light of the IMF’s refusal to grant new loans, without complying with the two conditions that the government abandons its intervention in managing the pound price, by liberalizing the exchange rate according to supply and demand, and the army’s non-interference In the ownership and management of the formal economy in the country, which gives the private sector priority in boosting investment rates.
The sources indicated that the government will have no choice during the next few months but to wait for the cash flow from the transfers of Egyptians from abroad, which in the first nine months of the previous fiscal year amounted to regarding $23.6 billion, a slight increase over the corresponding period in 2020-2021, and the revenues of the Suez Canal. Which amounted to $5.1 billion, and the revival of tourism, which increased to $8.2 billion, and to offset the increase in gas prices, clothing and agricultural products, and the sale of public assets in favor of Arab investment funds and foreign investors, as part of the acute shortage of liquidity to pay the interest on debts due on Egypt, and to pay the deficit in The current account, which is estimated to net regarding $40 billion at the end of the current fiscal year.