Egyptian Pound Strengthens Against Dollar to 48.35

The Egyptian pound has strengthened against the US dollar in recent weeks after a sharp decline in August due to foreigners exiting local debt instruments.

At the same time that the pound is rising, Egyptian banks have decided to raise the limits on using credit cards in foreign currency outside Egypt.

Since the recent devaluation of the Egyptian pound against the dollar in March, the exchange market has been witnessing a state of calm and stability with banks expanding their provision of foreign currencies to importers.

A number of factors supported the pound's stability against the dollar, including increased remittances from Egyptians abroad, increased investments by foreign funds in treasury bills, as well as that the Central Bank's decisions to local banks, to cover the required documentary credits to exporters.

Also, credit cards have witnessed an increase in both the purchase limit and the ability for customers to spend the equivalent of $5,000 when traveling.

All of these measures have a very positive impact on the exchange rate.