This file picture taken on August 25, 2022 shows Egyptian pound, British pound sterling, and US dollar banknotes. AFP
By the end of Thursday, the US dollar traded for EGP 27.01 for purchasing and EGP 27.11 for selling, up from EGP 26.36 and EGP 26.48 for purchasing and selling, respectively, according to Central Bank of Egypt rates.
At the National Bank of Egypt (NBE) and Banque Misr, the US dollar recorded EGP 26.95 for purchasing and EGP 27 for selling. Trading was set at EGP 27 for purchasing and EGP 27.1 for selling against the US dollar at the Commercial International Bank (CIB).
The Egyptian pound has been remarkably weakening since Wednesday following the issuance of new certificates of deposits (CDs) with an annual yield of 25 percent and a monthly yield of 22.5 percent. The exchange rate had been averaging around EGP 24.5 for the US dollar since October until Wednesday morning.
The NBE and Banque Misr, which issued the CDs, allow foreigners to purchase the certificates as well. They also said that clients can secure loans in collateral of these CDs.
With the new depreciation, the Egyptian pound has lost over 60 percent of its value against the US dollar since March 2022.
The decline is one of the measures included in the 46-month package of $3 billion approved for Egypt by the International Monetary Fund that indicates "a permanent shift to a flexible exchange rate regime."