We publish the price of the dollar today, Friday, March 29, 2024, at the Central Bank of Egypt, according to the latest developments in foreign exchange rates.
The price of the dollar in the Central Bank of Egypt today was as follows:
Buy: 47.32 pounds.
Sale: 47.46 pounds.
After Egypt weathered the worst economic crisis in decades relatively unscathed, its banks are ready to reap the medium- and long-term benefits resulting from the dramatic rescue operation that the country witnessed by Abu Dhabi’s sovereign wealth fund and the International Monetary Fund.
Long-standing concerns about the mechanics of the long-awaited additional devaluation of the Egyptian pound – seen as a necessary step to attract much-needed foreign currency investment – were largely dispelled in late February with ADQ announcing a $35 billion investment in the real estate project. The coastal area of Ras El Hikma.
The additional investment enabled the Central Bank of Egypt on March 6 to allow a 40 percent devaluation of the currency, closing the gap between official and black market foreign exchange rates, while raising interest rates by 600 basis points in a bolder than expected move in the face of inflation. high in the country.
These moves in turn led to a new $8 billion deal with the International Monetary Fund – the country’s fifth deal in 10 years – in which Egyptian authorities agreed to allow the pound to float freely, cut back on wasteful projects, and reduce government involvement in the economy in favor of the private sector.
While the government’s commitment to reform remains unclear in the medium term, recent events have already seen the return of foreign currency liquidity to the market, directly benefiting the banking sector.
It is worth noting that the economic crisis in Egypt began with the Russian invasion of Ukraine in February 2022, that is, almost two years before the announcement of the Ras El Hekma development project and after it relied heavily on hot money flows from international portfolio investors to meet its foreign currency needs – which were attracted by short debts. Attractive price terms for the country – the conflict led to the withdrawal of more than $20 billion in the following months.
Three devaluations of the Egyptian pound and six interest rate increases over the next 18 months had little impact on foreign currency reserves or inflation, which peaked at 37.9 percent in September 2023.
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