File Photo: People walk past a currency exchange shop displaying a giant US dollars banknote. AFP
The decline reflects a comparison between exchange rates before the outbreak of the regional conflict on 28 February and end-of-week closing levels. By the close of business (COB) on Thursday, the pound stood at EGP 54.29 for buying and EGP 54.43 for selling, according to data from the Central Bank of Egypt (CBE).
The conflict continues to weigh on the currency. CBE data show that, after weakening below EGP 54 on Monday, the pound remained broadly stable on Tuesday, then recorded a temporary recovery on Wednesday, when the US dollar traded at EGP 53.55 for buying and EGP 53.69 for selling.
Despite this brief reprieve, the pound remains significantly more vulnerable than before the conflict. Since the end of February, it has depreciated by EGP 6.44, or approximately 13.43 percent, from around EGP 47.9.
Pressure on the currency has been exacerbated by capital outflows, with more than $5 billion in short-term debt instruments exiting Egypt’s secondary market over the same period.
Across the banking system, exchange rates showed slight variation. The highest quoted levels on Thursday reached approximately EGP 54.30 for buying and EGP 54.40 for selling at lenders, including Suez Canal Bank, Banque Misr, QNB Bank, and several others.
The lowest recorded rates stood at EGP 54.28 for buying and EGP 54.38 for selling at Crédit Agricole, Al Baraka Bank, and the National Bank of Kuwait (NBK).
Although elevated, these levels remain below Monday’s peak range, when rates reached as high as EGP 54.55 for buying and EGP 54.65 for selling.
Other currencies
The euro traded at EGP 62.54 for buying and EGP 62.70 for selling on Thursday, compared with EGP 62.16 and EGP 62.34 on Wednesday. Overall, it has gained approximately EGP 6.07 against the pound since before the conflict.
Sterling stood at EGP 71.69 for buying and EGP 71.87 for selling, up from EGP 71.34 and EGP 71.54 a day earlier, marking an increase of roughly EGP 6.9 from pre-conflict levels.
Gulf currencies were broadly stable. The Saudi riyal traded between EGP 14.50 and EGP 14.56, the UAE dirham between EGP 14.78 and EGP 14.82, and the Qatari riyal between EGP 14.89 and EGP 14.93.
The Kuwaiti dinar traded at elevated levels compared with Wednesday, though below Tuesday’s peak. Meanwhile, the Bahraini dinar, Omani riyal, and Jordanian dinar also held firm within recent ranges.
CBE data indicate that these currencies have appreciated by between approximately EGP 1.75 and EGP 20.29 against the pound since the onset of the conflict.
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