The price of the dollar rose in Egypt today against the pound, at the start of trading on Tuesday, January 24, 2023, with the Central Bank, commercial banks and exchange companies, amidst calm in parallel.
The Egyptian pound is still already overvalued by 25%, when measured at the real effective exchange rate, which is a measure of the currency’s competitiveness vis-a-vis trading partners.
Deutsche Bank expects the Egyptian pound to weaken by up to 10% to 33 against the dollar before stabilizing.
In order for the devaluation of the pound to be in the interest of the Egyptian economy, the government must carry out economic expansions in the process of production, export, and manufacturing, and make maximum use of the resources it possesses to enhance economic empowerment, open investment horizons, improve its ability to rely on itself in production and manufacturing, deepen the local product, and reduce the import bill as much as possible. .
Egypt has suffered a shortage of foreign currency since the war in Ukraine hit tourism revenues, raised the cost of importing basic commodities and prompted foreign investors to withdraw more than $20 billion from the economy.
The Egyptian pound has lost about 33% of its value since late October 2022, when Egypt announced that it would pursue a policy of flexible exchange rates, in a move that helped it obtain a $3 billion loan from the International Monetary Fund.
The price of the dollar today in Egypt
The price of the dollar in Egypt rose at the beginning of the Central Bank of Egypt’s dealings today, to about 29.80 pounds for purchase, and 29.90 pounds for sale, compared to 29.77 pounds for purchase, and 29.87 pounds for sale yesterday.
The price of the dollar increased in the morning of today’s trading in Egypt, with the latest daily update of the National Bank of Egypt (the largest government bank), to about 29.72 pounds for purchase, and 29.82 pounds for sale, compared to 29.69 pounds for purchase, and 29.79 pounds for sale yesterday.-
The price of the dollar also rose during morning trading in Banque Misr today, to about 29.72 pounds for purchase, and 29.82 pounds for sale, compared to 29.69 pounds for purchase, and 29.79 pounds for sale yesterday.--
Also, the price of the dollar rose today at the beginning of the Commercial International Bank (CIB) transactions, to about 29.82 pounds for purchase, and 29.92 pounds for sale, compared to 29.79 pounds for purchase, and 29.89 pounds for sale yesterday.
The price of the dollar today in Egypt in exchange companies
The price of the dollar today in exchange companies during the day’s dealings recorded levels close to banks, at 29.72 pounds for purchase, and 29.92 pounds for sale.
The price of the dollar today on the black market
The parallel currency market in Egypt has been paralyzed over the past few days and so far, in conjunction with intense police campaigns against currency dealers and arresting some of them, and with the Central Bank of Egypt allowing the local currency to move again.
The parallel currency market flourished in Egypt during the second half of 2022 amid a severe shortage of dollar liquidity in local banks, and the exit of more than $22 billion in foreign hot money invested in debt instruments, before returning again slightly during the past few days.
And all expectations today point to the collapse of the black market for the dollar, with the official rise in the value of the American green against the pound, bringing the price of the dollar on the black market to about 30 pounds.
The price of the dollar in the parallel market reached 38 pounds in the last period of last year, but it declined sharply as the pound was allowed to decline in the official market at banks.
The price of the dollar today in the Bank of Cairo
The price of the dollar in Banque du Caire rose today, to 29.72 pounds for purchase, and 29.82 pounds for sale, compared to 29.69 pounds for purchase, and 29.79 pounds for sale yesterday.