Egypt Independent

Prices of US dollar against Egyptian pound remain stable



Prices of the US dollar against the Egyptian pound remained stable in several banks on Thursday, following a decline in the dollar this December that put the exchange rate below the LE16 mark for the first time in three years.

According to the latest update from the Central Bank of Egypt (CBE), US dollar prices reached LE15.76 for purchase and LE15.86 for sale in the Arab African International Bank (AAIB), and LE15.73 for purchase and LE15.83 for sale in the Commercial International Bank (CIB).

The US dollar was sold at a slightly lower LE15.76 and purchased at LE15.86 at the Suez Canal Bank, and sold at LE15.84 and bought at LE15.74 at the National Bank of Greece (NBG).

The US dollar exchange rate made a new record decline against the Egyptian pound earlier in December, falling below the LE16 mark for the first time since February 2017, after having settled during the last period at LE16.05 for purchase and LE16.15 for sale.

Former vice president of the BLOM Egypt Bank Tarik Metwally said previously that the dollar decline was normal, adding that he expected the trend to continue in light of efforts to improve the deficit in trade balance, the increase in foreign exchange earnings from tourism, foreign investment in treasury bills, and remittances of Egyptians abroad.

Meanwhile, exchange rates of the Saudi Riyal against the Egyptian Pound recorded LE4.18 for purchase and LE4.22 for sale, while the exchange rates of the United Arab Emirates Dirham recorded LE4.26 for purchase and LE4.31 for sale.

Egypt devalued its currency by 48 percent in 2016, allowing it to float freely, in order to meet a key demand by the IMF and secure a three-year $12 billion loan from the fund.

This led inflation rates to accelerate to 33 percent, which was accompanied by a sharp decline in earnings, according to Bloomberg.

However, inflation has declined, approaching the lowest level in years, according to a November report from Bloomberg, which indicated that profits recorded by Egyptian companies have returned to pre-November 2016 rates.

Edited translation from Al-Masry A-Youm