The dollar exchange rate continued to fall against the Egyptian pound below the level of 49 pounds at the end of trading on Monday, after witnessing rises last week that pushed the dollar to 49.55 pounds.
This comes in conjunction with the issuance of a decision by Egyptian President Abdel Fattah El-Sisi to renew the assignment of Hassan El-Sayed Hassan Abdel Allah, Acting Governor of the Central Bank of Egypt for a period of one year starting August 18, 2024.
The text of the decision of the President of the Republic of Egypt Arabic No. 343 of 2024 came after reviewing the Constitution and Law No. 194 of 2020 promulgating the Law of the Central Bank and the Banking System, and the Presidential Decree No. 367 of 2022 and 346 of 2023 decided (Article I) renewing the assignment of Hassan El-Sayed Hassan Abdel Allah … Acting Governor of the Central Bank of Egypt for a period of one year as of August 18, 2024.
Read also:Why did the US dollar fall?
Hot Money
Noman Khaled, an economic analyst at the Economic Research Department at the National Kuwait Bank, said that the Middle East has witnessed high tensions in recent weeks, increasing the likelihood that the economies of Egypt and neighboring countries will be affected.
In an interview with Arabic, Khaled pointed out that foreign investors withdrew their investments from local debt instruments in Egypt over the course of 8 sessions, explaining that this behavior is not new as these investments are known as ‘hot money’ that enters and exits easily.
Khaled added that debt yields have risen, but the positive side was the exchange rate flexibility in the first test of the CBE and the state. He pointed out that the Egyptian pound moved from the level of 47 pounds to the dollar to about 50 pounds, stressing the importance of this move with the first wave of exit of foreigners from the local market.
Foreign investment in Egypt’s treasury bills rose by USD 2 billion in May to a record USD 37.45 bln, so-called hot money, according to Central Bank of Egypt (CBE) data released yesterday.
The record increase comes ahead of Prime Minister Mostafa Madbouly’s statement at a recent press conference that the percentage of hot money that came out of Egypt during the global sell-off on Monday (August 4th) was between 7% and 8%.
Falling Cost of Debt Insurance
The cost of insuring Egypt’s 5-year sovereign debt fell to 6.57% at the end of last Friday’s trading, compared to 7.34% on August 7, according to recent data. This comes amid optimism that a ceasefire agreement in Gaza is close as part of negotiations hosted by Doha and completed in Egypt this week.
It is worth noting that foreign and Arab investors’ transactions recorded net purchases in bills and bonds during Thursday’s session, for the third consecutive session after a wave of selling that lasted for about 8 sessions.
Dollar today against the Egyptian pound
The US dollar continued to fall Egypt 49 against the Egyptian pound in Egyptian banks at the end of today’s trading.
The highest price of the dollar against the Egyptian pound was recorded at the Industrial Development Bank, reaching levels of 48.88 for buying and 48.98 for selling.
At the Central Bank, the dollar recorded today the level of 48.7159 pounds for buying, and 48.8531 for selling. Yesterday, the dollar hit 48.7440 for buying, and 48.8799 for selling.
What stock should you buy in your next trade?
With stock valuations soaring in 2024, many investors feel uncomfortable investing more money in stocks. Not sure where to invest your money now? Check out our proven portfolios and discover high-potential investment opportunities.
In 2024 alone, ProPicks’ AI identified two stocks that jumped more than 150%, 4 more that jumped more than 30%, and another 3 that rose more than 25%. This is an impressive record.
With portfolios specifically designed to follow Dow Jones, S&P, technology and mid-cap stocks, you can explore various wealth building strategies.
