Friday 22 Nov
The Egyptian pound strengthened against the US dollar on Tuesday, September 3, 2024, as the dollar's value declined by 4 piasters at the Central Bank of Egypt. This marks a continuation of a downward trend for the US dollar over the past week, with a total depreciation of 18 piasters against the Egyptian pound.
Factors contributing to the
dollar's decline:
Strengthening foreign exchange reserves:
The Central Bank of Egypt's growing foreign exchange reserves have bolstered
confidence in the Egyptian pound, making it more attractive to investors.
Increased foreign currency inflows:
Tourism and direct investment have been key drivers of foreign currency
inflows, supporting the pound's stability.
Effective fiscal and monetary policies:
The government's measures aimed at strengthening the Egyptian pound and
bolstering the national economy have played a significant role in the dollar's
decline.
Positive effects of the dollar's decline on the local market:
Lower import costs: The decrease
in the dollar price can lead to reduced import costs for goods, potentially
resulting in lower prices for consumers.
Increased foreign investment: The decline in the dollar may enhance the confidence of foreign investors in the Egyptian economy, attracting more capital inflows.
Dollar prices in Egyptian banks:
The Central Bank of Egypt: The US dollar recorded a price of 48.46
Egyptian pounds for buying and 48.60 Egyptian pounds for selling, after a
decline of 4 piasters from 48.50 Egyptian pounds for buying and 48.64 Egyptian
pounds for selling earlier today.
National Bank of Egypt: Decreased
to 48.49 Egyptian pounds for buying and 48.59 Egyptian pounds for selling,
compared to 48.53 Egyptian pounds for buying and 48.63 Egyptian pounds for
selling in the morning.
Banque Misr: Declined to 48.49
Egyptian pounds for buying and 48.59 Egyptian pounds for selling, after being
48.53 Egyptian pounds for buying and 48.63 Egyptian pounds for selling during
the morning transactions.
Bank of Alexandria: Remained
stable at 48.53 Egyptian pounds for buying and 48.63 Egyptian pounds for
selling, with no change.
Banque du Caire: Maintained its stability at 48.53 Egyptian pounds for buying and 48.63 Egyptian pounds for selling.
Future outlook for the US Dollar:
Analysts anticipate that the
ongoing decline of the US dollar in the Egyptian market is contingent upon:
External Factors: Such as shifts
in US interest rates and global economic circumstances.
Internal Factors: The performance
of the domestic economy and the influx of foreign currency.
Forecasting Central Bank actions:
Some experts predict that potential actions by major central banks, like the US Federal Reserve, could influence the global trajectory of the dollar. If these banks lower interest rates, as many anticipate, it could exert additional pressure on the dollar, potentially benefiting the Egyptian pound.
