Egyptian Pound, US Dollar notes.
The US dollar traded at EGP 52.75 for buying and EGP 52.88 for selling, up by around EGP 0.46 or 0.87 percent from last week’s closing rates of EGP 52.29 and EGP 52.42 on Wednesday before the Eid holidays, when the currency showed more stability.
It’s worth noting that this is the second time this month that the dollar rose to nearly EGP 53. It rose to EGP 52.72 for buying and EGP 52.82 for selling on Monday, 9 March. That rise showed signs of being temporary, however, with rates declining a day later to around EGP 52 per $1.
This came after over $1 billion at the time in short-term T-bills exited the Egyptian market due to temporary capital-flow pressures since the start of the US-Israeli war on Iran on 28 February.
Meanwhile, the latest rates leave the pound weaker than levels recorded before the start of the conflict and the retaliatory regional escalation. The currency has depreciated, so far, by about EGP 4.89 or around 10.2 percent, from around EGP 47.9 at the end of February.
This past Tuesday, the EGP weakened towards EGP 53 to the dollar, trading at EGP 52.62 for buying and EGP 52.76 for selling.
Concerns remain that continued pressure on capital flows could push the currency lower if the conflict persists, and the dollar could approach EGP 58 as well as drive inflation higher to 28–30 percent due to rising global energy, transport, and shipping costs.
Furthermore, exchange rates have recorded some variation across the banking system. Al Ahli Bank of Kuwait quoted among the highest levels on Thursday, at about EGP 52.78 for buying and EGP 52.81 for selling, up from last week’s highest peak in banks of around EGP 52.32–52.42.
Other lenders, including the Suez Canal Bank, quoted rates in the EGP 52.78-52.88 range. Meanwhile, Banque Misr, QNB Bank, the National Bank of Egypt, Egyptian Arab Land Bank and National Bank of Kuwait (NBK) reported slightly lower levels of around EGP 52.75–52.85.
Other currencies
The euro fell again to EGP 60.79 for buying and EGP 60.95 for selling on Thursday, down from EGP 60.99 and EGP 61.17 on Tuesday, but up by EGP 0.45 from pre-holiday levels and about EGP 4.3 higher than before the conflict.
The Pound sterling traded at EGP 70.28 for buying and EGP 70.48 for selling on Thursday, down from EGP 70.53 and EGP 70.71, respectively, on Tuesday. It still rose by EGP 0.45 week on week and by roughly EGP 5.5 compared with pre-conflict levels.
Gulf currencies increased slightly compared to Tuesday’s rates but remained elevated against the pound. The Saudi riyal traded at EGP 14.06–14.09, while the UAE dirham stood at EGP 14.36–14.4 and the Qatari riyal at around EGP 14.41–14.49.
The Kuwaiti dinar rose to EGP 171.9–172.5, up about EGP 1.47 from the end of last week’s COB, while the Bahraini dinar reached EGP 139.62–140.17. The Omani riyal climbed to EGP 137.02–137.4, and the Jordanian dinar to EGP 74.2–74.7.
CBE data showed these currencies have risen by roughly EGP 1.3 to EGP 12.78 against the pound since the start of the conflict.
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