The US dollar exchange rate against the Egyptian pound remained remarkably stable at the start of trading on Wednesday in both public and private Egyptian banks, continuing the calm that has prevailed in the foreign exchange market over the past few weeks. This stability is the culmination of a series of decisive economic measures taken by the Central Bank of Egypt, aimed at achieving a lasting balance in the foreign exchange market and supporting economic growth.
Background to exchange rate stability
This stability is primarily due to the historic decision made by the Central Bank on March 6, 2014, to fully liberalize the exchange rate of the Egyptian pound according to supply and demand mechanisms. This decision ended a long period of having two exchange rates for the currency, one official in banks and the other in the parallel (black) market, thus eliminating speculation and unifying the exchange rate. This step was supported by massive cash inflows that boosted the country's foreign currency reserves, most notably the major investment deal in the Ras al-Hikma project in partnership with the United Arab Emirates, in addition to an increase in the value of the International Monetary Fund loan.
The importance of stability for the Egyptian economy
Exchange rate stability is of paramount importance to the Egyptian economy on several levels. Domestically, it helps curb inflation by stabilizing the cost of imported goods and raw materials needed for industry, which positively impacts the prices of finished consumer products. It also provides a more attractive and transparent investment environment for both local and foreign investors, eliminating the uncertainty associated with currency fluctuations. Internationally, this stability strengthens the confidence of international financial institutions and investors in the Egyptian economy's ability to recover and grow, and encourages further foreign direct investment.
Dollar exchange rates in major Egyptian banks today, Wednesday
Below are the details of the dollar exchange rates in a number of major banks operating in Egypt today:
- The Central Bank of Egypt: The buying price was recorded at 46.96 Egyptian pounds, and the selling price at 47.07 Egyptian pounds.
- National Bank of Egypt: The buying price was recorded at 46.97 Egyptian pounds, and the selling price at 47.07 Egyptian pounds.
- Bank of Egypt: The buying price was recorded at 46.97 Egyptian pounds, and the selling price at 47.07 Egyptian pounds.
- Bank of Alexandria: The buying price was recorded at 46.97 pounds, and the selling price at 47.07 pounds.
- Commercial International Bank (CIB): The purchase price was recorded at 46.97 Egyptian pounds, and the selling price at 47.07 Egyptian pounds.
- Suez Canal Bank: The buying price was recorded at 46.99 Egyptian pounds, and the selling price at 47.09 Egyptian pounds.
- Abu Dhabi Islamic Bank: The buying price was recorded at 46.99 pounds, and the selling price at 47.09 pounds.
These converging prices reflect the success of the “interbank” mechanism in determining a fair and transparent exchange rate, which enhances the sustainability of market stability in the coming period.
