57120
Demand for the US dollar in Egypt dips for the first time in 2017.
Demand for the US dollar in Egypt dips for the first time in 2017.
  1. World Economy

Egypt Dollar Transactions Dip

  1. World Economy

Egypt Dollar Transactions Dip

The Egyptian pound strengthened slightly at banks in that country as demand for dollars by importers eased, bankers told Reuters on Sunday.
The dollar was being bought for around 18 pounds at most banks, down from around 19 last week. Banks were paying clients around 17.8 per dollar.
“The demand for dollar is less,” said one banker in Cairo.
“Banks have reached a point where they don’t need to keep raising prices to attract dollar inflows because there are not as many dollar requests by clients for the time being,” he said, adding that once demand picks up prices will start rising again.
Banks in Egypt had been raising the price to buy dollars from clients in order to attract inflows and cover requests from other clients seeking to buy dollars, but they say demand for American dollars has eased over the past week.
Business activity in Egypt shrank for the 15th consecutive month in December, although at a slower pace than the previous month, as inflation caused purchase costs to rise at a near-record pace and new orders to drop as the Egyptian pound weakened against the US dollar, a survey showed on Wednesday.
While banks are prioritizing imports of essential goods, private individuals are forced to buy dollars on the black market. Three traders on the black market said they were selling dollars at a range of 19.60-19.80 pounds to a dollar.
Egypt’s central bank abandoned its currency peg of 8.8 pounds to the US currency on November 3, hoping to unlock currency inflows and bring back foreign investors who were driven away after the 2011 uprising that ousted former President Hosni Mubarak.
Under the currency peg, dollar supplies were rationed by the central bank, forcing businesses to go to the black market for foreign currency. Bankers say it will take time for those dollars to be absorbed back into the banking system.
The currency peg drained foreign reserves, and analysts estimate the central bank is still around $10-15 billion short of the stock it needs.

 

Short URL : https://goo.gl/S5FSBF
  1. https://goo.gl/K9DD4S
  • https://goo.gl/7cVivc
  • https://goo.gl/BrvVDX
  • https://goo.gl/nFmcF8
  • https://goo.gl/VCytgs

You can also read ...

UN Body Warns EAC Against Trade Deal With EU
A United Nations think-tank has warned the East African...
The politics of Saudization has vexed businesses who are forced to employ Saudi nationals. Some companies simply pay locals to stay at home
The rent-based economy in Saudi Arabia has shown its limits...
No Market Economic Status for China
Director of the White House National Trade Council Peter Navarro...
Moroccan Liberalization Making Progress
Morocco continues to make notable progress in economic...
Core inflation increased by 1.2% in April.  Some of the rise may be due to pricing around Easter, the rate is the highest since the summer of 2013.
Inflation surged and growth continued to accelerate in the...
ASEAN Ready for Trade Pacts
ASEAN is keen to conclude a region-wide trade agreement with its...
The government has imposed restrictions on imports and increased tariffs on more than 300 products.
In green fields near Egypt’s Mediterranean coast, PepsiCo is...
RCB Reduces Key Rate to 9.25%
The Russian Central Bank reduced the key rate by 0.5 percentage...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus