On Monday, November 28, the price of the US dollar stabilized against the Egyptian pound, in most banks operating in Egypt.
A rush of rising rates for the dollar in Egypt started on November 3 when the Central Bank of Egypt raised the interest rate by 200 basis points and floated the pound.
The price of the dollar Monday, November 28, at Egyptian banks was as follows:
Suez Canal Bank
LE24.48 for purchase
LE 24.58 for sale
Commercial International Bank
LE24.52 for purchase
LE24.58 for sale
Banque Misr
LE24.48 for purchase
LE 24.53 for sale
National Bank of Egypt
LE24.48 for purchase
LE 24.53 for sale
LE24.40 for purchase
LE24.47 for sale
The CBE issued a statement, on Thursday, November 3.
An announcement of reform measures to ensure macroeconomic stability and achieve sustainable and comprehensive economic growth, was put into place to aid the floating the Egyptian pound.
Egypt first devalued its currency by 48 percent in 2016, allowing it to float freely in order to meet a key demand by the International Monetary Fund to secure a three-year US$12 billion loan.
The CBE announced the devaluation of the Egyptian pound for the second time in March by nearly 17 percent.
The CBE, on Saturday October 1, raised the required reserve ratio in banks from 14 percent to 18 percent.
The CBE confirmed in the periodic bulletin that the decision contributes to restricting the monetary policy it pursues.
In its meeting on Thursday the Monetary Policy Committee of the CBE kept the overnight deposit and lending rates and the bank’s main operation rate at 25.11 percent, 25.12 percent and 75.11 percent, respectively.
The credit and discount rate was also kept at 75.11 percent.
The bank also opted to increase the percentage of cash reserves that banks are obligated to maintain with CBE to become 18 percent instead of 14 percent.
Source: Egypt Independent