The price of the euro moved in the National Bank of Egypt, Misr and Commercial International Banks (CIB) after the Central Bank of Egypt’s decision, in its extraordinary meeting, to raise the overnight deposit and lending rates and the Central Bank’s main operation rate by 600 basis points to reach 27.25%, 28.25% and 27.75%, on The arrangement also raised the credit and discount rates by 600 basis points to reach 27.75%.
The price of the euro in banks was as follows:
Banque Misr: 50.40
CIB: 51.26
National Bank of Egypt: 50.40
The Central Bank of Egypt announced that it would allow the exchange rate of the pound to be determined according to market mechanisms.
Egypt’s financial landscape is witnessing a major transformation, as the Central Bank’s raising of interest rates has led to a rise in the value of bonds, representing a strategic economic maneuver.
In an important step, Egypt’s international bonds witnessed a noticeable rise after the Central Bank’s decision to increase interest rates by 600 basis points, coinciding with the Egyptian pound reaching new low levels. This development represents a pivotal moment for the country’s economy, indicating a strategy to confront inflation and achieve stability in the financial market. .
2047 bonds, in particular, saw big gains, rising 2.6 cents to 82.3 cents, according to TradeWeb data.
The decision to raise interest rates was part of a broader strategy by the Central Bank of Egypt to address growing inflationary pressures and provide a semblance of stability to the pound. The measure, which is seen as a step towards a long-awaited devaluation of the currency, aims to make Egyptian debt more attractive to international investors by offering… Higher returns.
The immediate response from the bond market underscored the global investor community’s renewed interest in Egypt’s economic prospects and longer-term bonds, especially those maturing in 2047, achieved the most significant gains, highlighting enhanced confidence among investors regarding Egypt’s long-term economic stability.