In a significant economic development, the US dollar has officially surpassed the 50-Egyptian pound mark for the first time ever. The surge in the dollar’s value was evident across several local banks, with exchange rates reflecting this increase.
The National Bank of Egypt reported a buying rate of 49.93 EGP and a selling rate of 50.03 EGP, marking a 17-piastre rise. Similarly, the Bank of Egypt listed its rates at 49.85 EGP for buying and 50.03 EGP for selling, showing the same upward trend. Other major banks, including the Commercial International Bank (CIB), Cairo Bank, Abu Dhabi Islamic Bank, and HSBC, also observed substantial increases in their exchange rates for the US dollar.
Sahar El-Damaty, former vice president of Bank of Egypt, explained that the surge was driven by several factors, such as increased demand in anticipation of the Ramadan season, the government’s efforts to expand the industrial base requiring raw material imports, and the year-end financial adjustments of various companies. These factors have all contributed to the increased dollar prices.
While the dollar’s value has reached new heights, El-Damaty predicted a potential decline in the coming months. She forecasted that the dollar might return to between 49 and 49.5 Egyptian pounds in January and February 2025, although she warned that the current surge could lead to higher prices for some goods.
Mohamed El-Etreby, CEO of the National Bank of Egypt and chairman of the Federation of Egyptian Banks, described the fluctuation in the dollar’s value as an indication of a flexible exchange rate system in Egypt. He emphasized that these changes do not represent a new devaluation of the Egyptian pound. El-Etreby also reassured the public that Egypt’s banking system remains stable and capable of managing foreign currency demands effectively.
As the Egyptian pound continues to experience volatility, the outlook remains uncertain, but the Egyptian government’s economic policies and the strength of the banking system will play crucial roles in shaping the future of the nation’s currency.
