Egypt exchange bureaus attract EGP 25.5 bln in foreign currency since EGP flotation

Ahram Online , Friday 10 May 2024

Exchange bureaus affiliated with Egypt's three largest state-owned banks have collected foreign currency proceeds surpassing EGP 25.550 billion since the devaluation of the Egyptian pound on 6 March, reported Egyptian news agency MENA on Friday.

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US Dollar bills. Stock Image.

 

Customers have sold foreign and Arab currencies totalling EGP 14.310 billion at Al-Ahly Exchange, owned by The National Bank of Egypt, since March, Abdel-Mageed Mohi Eddin, head of Al-Ahly Exchange, told MENA.

The value of foreign and Arab currencies exchanged at Misr Exchange, owned by Banque Misr, and Cairo Exchange, owned by Banque du Caire, in the Egyptian pound since the March decision hit some EGP 11.240 billion, MENA noted.

On 6 March, Egypt floated its local currency to narrow the gap between the official and parallel exchange rates after a year of substantial disparity that caused a steep foreign currency crunch.

The value of the Egyptian pound, as a result, depreciated to around 47.5 per dollar from nearly EGP 31 – which had been maintained over the past year.

Following the flotation, Egypt secured significant foreign currency inflows, including the $35 billion Ras El-Hekma deal with the UAE and a host of grants and loans from international institutions.

In mid-March, Prime Minister Mostafa Madbouly said remittances from Egyptian expatriates are gradually returning to normal rates due to the recent economic measures.

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