Today's dollar price against the pound - a new high after the Central Bank's decision

Today's dollar price against the Egyptian pound

Today, the price of the dollar continued to rise against the pound within various Egyptian banks, after the Central Bank of Egypt’s decision this morning to raise the interest rate and liberalize the exchange rate.

This step represents a long-awaited devaluation of the Egyptian pound, because applying a more flexible exchange rate is one of the main demands of the International Monetary Fund.

Reasons for the rise in the price of the dollar today against the pound

The price of the dollar rose today to break the barrier of 50 pounds, after the price of the dollar was 30 pounds, as a result of the decision of the Central Bank of Egypt to raise the interest rate, in conjunction with the announcement of an investment deal with an Emirati partnership for the Ras Al - Hikma area, on the northern coast of Egypt.

The price of the dollar in Egyptian banks

The dollar prices in Egyptian banks witnessed a noticeable increase, as they exceeded the fifty-pound barrier, after the Central Bank of Egypt’s decision to raise interest rates and adopt a flexible exchange rate policy, so the dollar prices in Egyptian banks became as follows:

Today's dollar price at the Central Bank:

The price of the US dollar rose today against the Egyptian pound inside the Central Bank, after the Central Bank’s decision today, to record a value of 49.43 pounds for purchase, and 49.56 pounds for sale.

Today's dollar price, National Bank:

The price of the US dollar rose today against the Egyptian pound inside the National Bank after the Central Bank’s decision today, recording a value of 49.50 pounds for purchase, and 49.60 pounds for sale.

Today's dollar price at Banque Misr:

The price of the US dollar rose today against the Egyptian pound inside the Banque Misr after the Central Bank’s decision today, recording a value of 49.50 pounds for purchase, and 49.60 pounds for sale.

The price of the dollar now in the Bank of Alexandria after the Central Bank’s decision:

The price of the US dollar rose today against the Egyptian pound at the Bank of Alexandria, after the Central Bank’s decision today, to record a value of 49.60 pounds for purchase, and 49.70 pounds for sale.

The value of the dollar today at CIB Bank after raising the interest rate in Egypt:

The price of the US dollar rose today against the Egyptian pound inside the CIB Bank after the Central Bank’s decision today, recording a value of 49.70 pounds for purchase, and 49.80 pounds for sale.

The price of the dollar today, Wednesday, at the Cairo Bank:

The price of the US dollar rose today against the Egyptian pound at the Bank of Cairo, after the Central Bank’s decision today, to record a value of 49.30 pounds for purchase, and 49.40 pounds for sale.

The price of the dollar today, Wednesday, in Abu Dhabi Islamic Bank:

The price of the US dollar rose today against the Egyptian pound within the Abu Dhabi Islamic Bank, after the Central Bank’s decision today, to record a value of 50.75 pounds for purchase, and 50.85 pounds for sale.

The price of the dollar today, Wednesday, in Faisal Islamic Bank:

The price of the US dollar rose today against the Egyptian pound at Faisal Islamic Bank, after today’s Central Bank decision, to record a value of 49.45 pounds for purchase, and 49.55 pounds for sale.

Today's decision by the Central Bank of Egypt to raise interest rates

This comes after the Monetary Policy Committee of the Central Bank of Egypt decided - during its extraordinary meeting today - to raise overnight deposit and lending returns and the central bank’s main operation rate by 600 basis points, to 27.25%, 28.25%, and 27.75%, respectively.

The Central Bank of Egypt said in a statement that the committee decided to accelerate the process of monetary restriction in order to accelerate inflation’s downward path and ensure a decline in its monthly rates.

The bank also affirmed its commitment to maintaining price stability in the medium term, as part of its keenness to fulfill the role assigned to it to protect the requirements of sustainable development. To achieve this, the central bank is committed to continuing its efforts to shift towards a flexible framework for targeting inflation, by continuing to target inflation as a basis for monetary policy with Allow the exchange rate to be determined according to market mechanisms.

He continued in that context, as he considered unifying the exchange rate a very important measure, as it contributes to eliminating the accumulation of demand for foreign exchange following the closing of the gap between the official and parallel market exchange rates.

Today's dollar price against the Egyptian pound

Consequences of the rise in the price of the dollar against the Egyptian pound

1. High prices of goods and services:

Imported goods: The price of everything imported from abroad, including food, medicine, electrical appliances and spare parts, increases, which affects citizens’ purchasing power.
Local goods: The production cost of some local goods that depend on imported components increases, which leads to an increase in their final prices.
Services: The cost of some services such as tourism, travel, and studying abroad increases.

2. Increased inflation:

High prices for goods and services lead to an increase in the inflation rate, which reduces the value of the Egyptian pound and weakens its purchasing power.
It becomes difficult for citizens to provide for their basic needs, especially those with limited income.

3. Decline in foreign investments:

The rise in the price of the dollar may reduce the desire of foreign investors to pump their money into Egypt, which hinders the process of economic development.
Investing in Egypt becomes more expensive for foreign investors, which may encourage them to look for other, more stable destinations.

4. Increasing the difficulty of repaying foreign debts:

The value of dollar-denominated foreign debts is rising, increasing the burden of repayment on the Egyptian government.
The government may be forced to use its foreign currency reserves to repay debts, which may affect the stability of the local currency.

5. Export opportunities:

Exporting Egyptian products may become more profitable for Egyptian companies, which may help increase exports and improve the balance of payments.
Egypt may become a more attractive destination for foreign tourists, especially from countries with strong currencies.

6. Pressures on citizens:

The rise in the price of the dollar may increase pressure on citizens, especially those with limited income, which may exacerbate the problem of poverty.
The government may have to take measures to relieve pressure on citizens, such as increasing subsidies or reducing taxes.

7. New opportunities:

The rise in the price of the dollar may create new opportunities for Egyptian companies in sectors such as export and tourism.
The government may encourage the development of domestic production sectors to reduce dependence on imports.

8. Unclear future:

It is difficult to predict the path of the dollar price in the future, as it depends on many factors, such as the monetary policy of the Central Bank of Egypt, global economic conditions, and the state of political stability in Egypt.
It is important for the Egyptian government to take the necessary measures to mitigate the effects of the rise in the price of the dollar on citizens, and to strengthen the Egyptian economy’s ability to withstand external challenges.

Financial Economic Insights | Business

Today's dollar price against the Egyptian pound - a new high