After the dollar price dropped to below LE29.61 by the close of Monday's trading, the Central Bank of Egypt (CBE) released a statement addressing the exchange rate of the pound, confirming that the Egyptian currency market is moving in a favourable way.
The dollar decreased, according to the CBE, after reaching a high of LE32 on Wednesday.
The CBE reported covering more than two billion dollars' worth of requests from Egyptian importers over the course of the last three days, in addition to covering other requests from Egyptian bank customers. This confirms the banking sector's capacity to swiftly cover importers' outstanding currency requests.
The Central Bank also said in the statement that it has been keeping an eye on a number of favourable currency market indicators, including a notable rise in banks' foreign exchange earnings from both the local market and remittances from Egyptian expatriates.
Over $925 million more in dollar revenues have been generated since Wednesday thanks to the tourism industry and the return of foreign investors to the Egyptian market.
Indicators showed a significant increase in trading volumes in the interbank market during the past few days, with trading volumes rising by a factor of more than 20 compared to the daily trading volumes just a few days prior.
In order to offer an integrated financial service that enables bank customers to insure against the risks of exchange rate fluctuations, banks actively push financial derivatives activities in the exchange market, the statement continued.
The amount of foreign cash reserves climbed by $470 million in December, from $33.53 billion at the end of November, to $34 billion.
Despite Egypt paying off approximately $5.2 billion in foreign debts in November and December, foreign currency reserves increased for the fourth consecutive month, totaling an increase of almost $860 million over the previous four months.
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