US dollar prices have decreased in Egyptian banks to between LE16.46 and LE16.50 for purchase and between LE16.56 and LE16.60 for sale amid expectations of continued decline due to the increasing volume of dollars in the banks.
The dollar declined to LE16.46 for purchase and LE16.60 for selling in the Central Bank of Egypt (CBE).
The CBE stated on Wednesday that foreign reserves have increased by $52 million to total $44.969 billion in August.
Back in August, the Central Bank of Egypt said that the value of the country’s foreign currency reserves reached US$44.916 billion at the end of July 2019, marking an increase of about $564.9 million from their value of $44.351 billion at the end of June 2019.
The current foreign exchange reserve covers the costs for approximately eight months of Egypt’s commodity imports, therefore securing the country’s commodity and strategic needs.
The main function of the CBE’s foreign currency reserves, made up of gold and various international currencies, is to provide commodities, repay installments and external debt, and cope with economic crises during exceptional circumstances.
The reserves also help when the main sources of foreign currency for Egypt (tourism, exports and investments) are impacted in times of unrest.
The CBE received two billion dollars earlier this year, the last tranche of the $12 billion loan from the International Monetary Fund (IMF).
Edited translation from Al-Masry Al-Youm