Dollar Drops 5 pt Against Egyptian Pound

By: Taarek Refaat

CAIRO, Mar. 11(SEE)- The dollar fell against the Egyptian pound during yesterday's trading, with a value within 1-5 piastres. The rate dropped at the banks of Credit Agricole and Audi, about 5 pt to settle at EGP 17.39 for sale price, and EGP 17.49 for purchase. The greenback also dropped in National Bank Of Egypt (NBE) and Banque Misr, recording EGP 17.39 for purchase, and EGP 17.49 for sale.

The price of the US currency in the Arab African International Bank, and the Suez Canal Bank settled at EGP 17.40 for purchase, EGP 17.50 for sale, and in the Bank of Housing & Development, it reported EGP 17.41 for sale and EGP 17.51 ​​for purchase.

In Abu Dhabi Islamic Bank (ADIB), The greenback amounted for EGP 17.42, and EGP 17.52, However, the highest price was observed at the Bank of Alexandria at EGP 17.43, and EGP 17.53.

Vice president of the research department at EFG Hermes Mohamed Abu Pasha explained that the dollar's depreciation was triggered due to a rise in foreign demand for Treasuries last Thursday.

He added that amidst the boom in imports to fulfill Ramadan market demand, the dollar price may rise due to the high bid for the greenback. However, this impact will depend on the volume of investments and purchase of government Treasury bonds in foreign currency.

Egypt will pay $ 14.7 billion in foreign debt this year, including $ 6.129 billion in the first half, $ 8.608 billion in the second half and about $ 8.5 billion for Arab neighboring countries including Kuwait, Saudi Arabia, and the UAE.

"Debt is being repaid from the Central bank's reserve, and that could cause the fluctuation of the dollar," he noted, adding that the decline in cash flows from foreign investments could result in the depreciation of the pound by 2.55 percent.

Senior Economist at CI Capital Hany Farahat said the sustained growth in exchange inflows through Foreign Direct Investments (FDI), treasury bonds, and tourism revenues, would limit the volatility and rise of the dollar over the coming period.

Meanwhile, tourism revenues surged to record $ 9.8 billion during the fiscal year 2017/2018, an increase of 123 percent and net FDI amounted to $ 7.7 billion.