Investing.com – Today, Tuesday, exchange rates witnessed a new move for the Egyptian pound to drop to levels of EGP 30 to the dollar, in conjunction with an unprecedented rise in Egyptian returns.
Data from the Central Bank of Egypt, national banks, and private banks revealed a decrease in the exchange rate of the Egyptian pound against two piasters, leaving less than 6 piasters to reach the 30-pound threshold.
And the exchange rate of the dollar against the pound rose, according to the Central Bank of Egypt, to levels of 29.9406 pounds per dollar for sale, and levels of 29.8558 pounds per dollar for purchase, by the end of Tuesday’s trading.
In national banks, the exchange rate of the dollar rose to levels of 29.84 pounds per dollar for sale, and levels of 29.74 pounds per dollar for purchase in the National Bank of Egypt and Banque Misr.
In private banks, the price of the dollar in private banks rose to levels of 29.941 pounds per dollar for sale and levels of 29.865 pounds per dollar for purchase by the end of Tuesday’s trading.
Today, Tuesday, January 24, on behalf of the Ministry of Finance, the Central Bank of Egypt announced the issuance of long-term debt instruments, treasury bonds, at a value of EGP 250 million, for a period of 7 years, until May 07, 2029.
The Central Bank of Egypt, on behalf of the Ministry of Finance, offered treasury bills worth 78.5 billion pounds, in coordination with the Ministry of Finance, to finance the budget deficit. The value of the propositions came as follows:
The value of the first offering is about EGP 20.5bn for a period of 182 days.
The value of the second offering is about EGP 23bn for a period of 364 days.
The value of the third offering is about EGP 13.5bn for a period of 91 days.--
The value of the fourth offering is about EGP 21.5bn for a period of 273 days.-
Banks demand 26.5%
Data on the latest central bank bond bid revealed that some banks offered a return of up to 26.5% on the issuance of bonds.
The Central Bank received requests from 48 banks and institutions to subscribe to the 3-year bonds, with a return ranging from 18% to 26%, on an issue worth 3 billion for a period of 3 years, and the Central Bank accepted offers worth 3.2 billion pounds, with an average return of 20.95%, from 27 banks.
While banks received 31 requests to subscribe to 5-year bonds, with a return ranging from 14.55% to 26.5%, on an issue worth 500 million pounds, and the Central Bank accepted only 3 offers worth 7.875 million pounds, with an average return of 19.048%.
This came according to the data that was revealed today, Tuesday, according to the last offering of treasury bonds in pounds for periods of 3 and 5 years on the 16th of this month, with a value of 3 billion pounds for the first offering and 500 million for the second.
The Central Bank of Egypt raised the interest rate by 300 basis points; To contain inflation pressures, targeting an average of 7% (±2% percentage point) during the fourth quarter of 2024, and 5% (±2% percentage point) on average during the last quarter of 2026.
Experts emphasized the need to control the exchange market by issuing high-yield short-term savings certificates, to attract citizens’ savings, and to arrange foreign exchange reserves to meet the demand for dollars to stop speculation on it.
The meeting of the Monetary Policy Committee of the Central Bank of Egypt, on December 22, is the last meeting of the committee in 2022.
Throughout the year, the committee raised the interest rate by 800 basis points, so that the rate of returns for deposits and lending for one night and the rate of the main operation of the Central Bank reached 16.25%, 17.25%, and 16.75%, respectively, and the credit and discount rates were raised to reach 16.75%.