The exchange rate of the US dollar against the Egyptian pound saw a notable increase during Sunday’s trading, with the US currency rising by amounts ranging between 38 and 88 piasters in several banks, compared to the average closing prices on Thursday.
The price in certain banks approached the LE49 mark.
At the National Bank of Egypt, the dollar recorded approximately LE 48.75 for buying and LE 48.85 for selling, an increase of 88 piasters, one of the highest increases recorded on Sunday.
At Banque Misr, the dollar reached LE 48.30 for buying and LE 48.40 for selling, an increase of about 43 piasters compared to the previous average prices.
Impact of geopolitical situation
Banking expert Tarek Metwally explained that this sudden surge in the dollar’s exchange rate against the Egyptian pound on Sunday, which jumped by approximately 88 piasters in one go, reflects the escalating geopolitical tensions in the region following the outbreak of war between Iran and the US
This has triggered a wave of anxiety in both global and local markets.
Metwally explained that this jump reflects investor tendency to turn to the US dollar as a safe haven during times of crisis.
He added that the dollar’s rise resulted from increased demand from companies and importers seeking to hedge against potential fluctuations in the exchange market.
Currencies in emerging markets are often under pressure during periods of global turmoil, the expert noted.
Metwally that this will have repercussions on the cost of imports, especially raw materials and basic commodities, which in turn may be reflected in price levels within the local market, alongside increased burdens on companies that rely on imports or financing in foreign currencies.
Edited translation from Al-Masry Al-Youm
