The exchange rates of the dollar witnessed successive increases against the Egyptian pound this week, bringing the price of the dollar against the pound to EGP 19.10 to buy, and EGP 19.13 to sell, which was followed by an increase in the prices of Gulf currencies against the Egyptian pound.
The price of the dirham continued to rise against the pound during trading today, Wednesday, to reach EGP 5.20 for purchase, and EGP 5.21 for sale in the Abu Dhabi Islamic Bank (ADIB), and the price of the Saudi riyal rose to EGP 5.08 for purchase, and EGP 5.09 for sale.
The price of the Kuwaiti dinar against the pound reached EGP 59.78 for purchase, and EGP 62.31 for sale in the National Bank of Egypt (NBE), while the price of the Bahraini dinar reached EGP 49.22 for purchase, and EGP 50.68 for sale.
The price of the Omani riyal rose against the pound to EGP 48.35 for purchase and EGP 49.63 pounds for sale at the NBE, and the Qatari riyal rose to EGP 4.88 for purchase and EGP 5.20 for sale during today’s trading
Why did the prices of these currencies rise against the pound?
The main reason for the rise in the prices of the currencies of the Gulf countries against the Egyptian pound is that these countries peg their currencies to the dollar, which reduces the foreign exchange risk for the countries of the region because a large part of their revenues come from oil, the price of which is determined in the global market in the US currency.
The six member states of the Gulf Cooperation Council – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE – have pegged their currencies, or adopted a managed system of foreign exchange rates, since the seventies and eighties of the last century, which makes any rise in the price of the dollar against the pound, followed by a rise in the prices of the Gulf currencies against the pound.