Norway's Enova hands $114mn for hydrogen production    Gold prices in Egypt on June 29    World Bank to provide Egypt $500 million to enhance food security – minister    Saudi citizens could enter Schengen countries visa-free    Egypt's Petrojet returns to Libyan oil sector after 11 years    Cemex, VeryNile sign deal for Egypt's Nile River    NATO remarks Egypt's role in maintaining stability in Middle East and Africa    Congo needs Egypt's expertise to diversify its economy – FPI official    Dostarlimab drug cures rectal cancer patient 100%, trials show    Egypt: A royal train turns into a new tourism attraction    Conclusions and Recommendations of the 1st edition of Africa Health ExCon    For the first time John Legend to perform in Egypt    Egypt discovers newly treasure trove of ancient artifacts at Saqqara Necropolis    Noura Al-Mutair – first Gulf female boxer in World Championships    Liverpool fans: "You'll Never Walk Alone" to Cristiano Ronaldo    Egypt to play key role in integrating water, climate issues globally – World Bank official    Egypt's telecoms regulator announces working hours for holy month of Ramadan    Maha karara joins AAIB as Head of Corporate Communications, Sustainability    Egypt works on charting cooperation strategies with international institutions for 5 years: Al-Mashat    Over 2.4 million newborns examined for hearing impairment: Health Ministry    Netflix releases trailer of Arab adaption of 'Perfect Strangers' film    Balqees to headline concert celebrating launch of streaming giant LIVENow in MENA    Sawsan Badr to be honoured at Aswan Women Film Festival    MP Abdel Hady Al-Qasby calls government to facilitate and support NGOs    Al-Sisi follows up on 'Great Transfiguration Project' in St. Catherine    Cairo, London stress need to strengthen cooperation to face climate change    Foreigners account for 22.6% of Egypt's T-bills issuances in 1H 2021: CBE    Egypt's ambassador to Italy passes away    Egypt confirms readiness to help African countries face terrorism and extremism    An estimated 235 million people needed humanitarian assistance and protection in 2021, an increase of 40% compared to 2020: IOM Egypt    Egypt, DRC discuss water cooperation during WYF    Egypt, DR Congo discuss boosting bilateral cooperation during WYF    Cameroonian police probe assault on three Algerian journalists covering AFCON    Pharaohs start AFCON 2021 campaign with fierce clash against Nigeria    Foreign Ministry opens capacity building course for French-speaking African diplomats    Egypt's trade with Nile basin countries climbs 26% y-o-y in 9 months    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

CBE Fixes US Dollar, Ambiguity Remains Over 2 Previous Increases
Published in Amwal Al Ghad on 13 - 07 - 2015

The Central Bank of Egypt (CBE) stabilised Sunday the US dollar's exchange rate against the Egyptian pound for the third time in a row, to stand at EGP 7.7301. The US dollar price against the Egyptian pound in banks stands at EGP 7.78 for buying and EGP 7.8301 for sale.
The dollar's price rate reached this level last Sunday when the CBE increased the value by 20 piasters over two stages. The first raise of 10 piasters occurred on 2 July, with the second raise, of another 10 piasters, occurring last Sunday, with the CBE fixing its price.
"Fixing the dollar's price by the CBE, after the sudden significant increase, is not understandable, and raises a lot of question marks about the reason behind raising the dollar's exchange rate in the first place especially at this time," says Ossama El-Manialawy, assistant general manager of the treasury department at a private bank.
El-Manialawy said that the CBE's rise is a significant and unusual increase, which surprised the market. He added that these two steps gave the market the impression that it is possible to take similar steps again.
However, the market was surprised by the dollar's price being fixed following the rise, which raises high ambiguity about the reason for raising the dollar in the first place and by such a high rate.
The CBE had launched three auctions a week for selling dollars to banks, on Sundays, Tuesdays, and Thursdays. Through these auctions, the CBE is able to control determining the dollar's price at the banks and the exchange companies working in the local market.
However, the market was not satisfied by the justifications mentioned by CBE Governor Hisham Ramez regarding the increase of the US dollar against the Egyptian pound. Ramez's justifications were focused on the bank's keenness to minimise importing and protect local production.
Daily News Egypt published only recently an exclusive statement by a prominent banker, in which he asserted that the CBE intentionally reduces the value of the Egyptian pound to meet International Monetary Fund (IMF) requirements. The IMF believes that the value of the Egyptian pound against the US dollar is over its real level.
Source: Daily News Egypt

Clic here to read the story from its source.