Dollar Losses 13 Pt. Against Egyptian Currency

The US dollar continued its wave of losses against the Egyptian pound in major banks at the end of trading, loosing around 13 piastres this week to hit the lowest level of purchase since mid-November 2016.

According to the average market prices of the Central Bank of Egypt (CBE), the price of the dollar fell against the Egyptian currency, at the end of transactions, to record EGP 15.51 for purchase and EGP 15.61 for sale, compared to EGP 15.64 for purchase, and EGP 15.74 for sale at the end of trading last week.

In mid-November 2016, during the liberation of the currency, the price of the dollar ranged between EGP 15.13-5.61 to buy, and EGP 15.94-15.88 to sell.

The year 2019 was a positive one for the Egyptian pound as the exchange rate witnessed a series of gains against the dollar since the beginning of last year.

The Egyptian Minister of Planning, Hala Al-Sad, attributed the drop in the price of the US currency and the breaking of the 16-pound barrier to several factors, including the increase of foreign investments in Egyptian treasury bills (T-bills), which rose to $ 15.29 billion at the end of last September, in addition to the increase in the numbers of tourists and stability of remittances of Egyptians abroad.

The balance of foreign investments in government debt instruments  amounted to about $ 22 billion at the end of last December, according to previous statements by the Egyptian Minister of Finance,Mohamed Maait.

The Egyptian tourist revenues increased during the first quarter of the current fiscal year by 6.7% on an annual basis, to reach $ 4.19 billion, compared to $ 3.93 billion during the same quarter of last fiscal year.

Tourism revenues recorded its highest level historically during the past fiscal year, to record about $12.6 billion, compared to $9.8 billion during the previous year.

According to data from the CBE, net foreign direct investment in Egypt increased in the H1 FY 2019/20 to record about $2.35 billion during the period from July to the end of last September, compared to $1.41 billion during the same period in FY 2018/19 last fiscal year.

Also, Egypt's foreign currency reserves increased to $ 45.456 billion in January, compared to $ 45.419 billion last December.

Finally, the total remittances of Egyptians working abroad during the period July to November 2019 amounted to $ 11.1 billion, compared to $ 9.9 billion during the same period last fiscal year.