Dollar and Egyptian pound (iStock)
Egyptian Pound
In light of the Egyptian banking sector’s ability to provide the required quantities to importers
Calmness and stability prevailed in the exchange market in Egypt, with the exchange rates of the dollar stable at the levels it reached in last week’s transactions in the official market.
On the other hand, the black market is regarding to end with the continued collapse of importers’ demand for dollars from outside the official market, in light of the Egyptian banking sector’s ability to provide the quantities required to completely end the crisis of goods stockpiling in Egyptian ports.
Why did the Egyptians decline in buying gold despite the low prices?
Workers in the parallel exchange market told Al-Arabiya.net that the prices are close to the dollar exchange rates in the official market, and the difference between prices does not exceed 0.40 pounds. At the same time, there is no actual implementation and the transactions that take place are in limited ranges, with major traders stopping work and others fleeing.
The gap between the exchange rates in the official and black markets reached its peak during the last week of last year, when the exchange rate of the dollar outside the official market recorded a level of 38 pounds, but with the Central Bank’s moves in the file of ending the crisis of stacked goods and its closeness to ending the crisis, it collapsed. The exchange rate of the dollar in the parallel market to a level not exceeding 31 pounds at the present time, compared to regarding 30.62 pounds in the official market.
The highest dollar exchange rate at Abu Dhabi Islamic Bank came at 30.57 pounds for purchase, compared to 30.62 pounds for sale. At the Central Bank of Egypt, the exchange rate of the US green note has stabilized at 30.53 pounds for purchase, compared to 30.62 pounds for sale.
And in 22 banks led by the Commercial International Bank of Egypt and the National Bank of Kuwait, the exchange rate of the US green note settled at 30.52 pounds for purchase, compared to 30.62 pounds for sale. The lowest dollar exchange rate was in 4 banks, led by the National Bank of Egypt and Banque Misr, at 30.42 pounds for purchase, compared to 30.52 pounds for sale.
Since March of last year, the exchange market in Egypt has witnessed intense moves by the Egyptian government and the Central Bank of Egypt to control the largest crisis in the exchange market since the launch of economic reform programs in early November 2016.
Since last December, the government has been able to end the crisis of the accumulation of goods in Egyptian ports, as it was able to release goods with a total value of between 17 to 18 billion dollars, which caused the elimination of violent speculation that was occurring in the black market.
A few days ago, Moody’s had announced the downgrade of the Egyptian government’s long-term foreign and local currency ratings to B3 from B2 and changed the outlook to stable from negative. This comes at a time when the World Bank and the International Monetary Fund are speaking positively regarding the Egyptian economy during the coming period.
The first comment from the Egyptian government came from the Minister of Finance, Dr. Mohamed Moait, who indicated that the Egyptian government dealt positively with the concerns contained in the report. He pointed out that his country’s government has taken integrated financial and monetary measures and policies that contributed to the “Standard & Poor’s” establishment, during the last period, in consolidating its view of the Egyptian economy with a stable future outlook.
He explained that the Egyptian government is committed to economic reforms and the structural reform program supported by the International Monetary Fund with an agreement that extends to 48 months, which allows for economic growth in the coming years and enhances the ability of the Egyptian economy to meet the country’s external and internal needs.