Egypt, Elsewedy review progress on Ain Sokhna phosphate complex    US employment cost index 3.6% up in year to June 2025    Egypt welcomes Canada, Malta's decision to recognise Palestinian state    Pakistan says successfully concluded 'landmark trade deal' with US    Sterling set for sharpest monthly drop since 2022    Egypt, Brazil sign deal to boost pharmaceutical cooperation    Modon Holding posts AED 2.1bn net profit in H1 2025    Egypt's Electricity Ministry says new power cable for Giza area operational    Egypt's Al-Sisi, Italian defence minister discuss Gaza, security cooperation    Egypt's FM discusses Gaza, Nile dam with US senators    Aid airdrops intensify as famine deepens in Gaza amid mounting international criticism    Egypt exports first high-tech potato seeds to Uzbekistan after opening market    Health minister showcases AI's impact on healthcare at Huawei Cloud Summit    On anti-trafficking day, Egypt's PM calls fight a 'moral and humanitarian duty'    Egypt strengthens healthcare partnerships to enhance maternity, multiple sclerosis, and stroke care    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    I won't trade my identity to please market: Douzi    Sisi sends letter to Nigerian president affirming strategic ties    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    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 cuts margin to trade US dollar with local lenders
Published in Daily News Egypt on 21 - 03 - 2015

The Central Bank of Egypt (CBE) has decided to cut the price margin for trading the US dollar with local banks to 5 piasters from the previous 10.
The move is another step to suffocate a parallel market that has blossomed over the past two years amidst efforts to protect the Egyptian pound.
The new margin announced by CBE Governor Hisham Ramez on Thursday is based on the price of the dollar at the CBE's foreign exchange auctions. In the last round of auctions, which took place on Thursday, the pound was kept steady at EGP 7.53 against the dollar.
"This decision, along with barring people from depositing dollars attained from the parallel market into local banks, is part of measures to terminate the black market. It leaves no incentives to deal with it," Mohamed Abu Basha, a Cairo-based economist at investment bank EFG-Hermes Holding SAE, told Daily News Egypt.
Ramez promised investors in November to eradicate the illegal trading of the US dollar within a year, and has since issued a series of measures that drastically shrunk the business.
"Decisions taken last month placed restrictions on the depository effect, but there were no limitations to the selling effects, which this decision imposes," Abu Basha explained.
In February, a decision was made limiting individuals and companies to depositing a maximum of $10,000 a day, or up to of a $50,000 a month. The move was aimed at disabling the purchase of large quantities of dollars and cashing them in local banks.
Measures targeting the parallel market have led to the steady drop in the value of the Egyptian pound from EGP 7.18 since 18 January. A trader said the dollar was selling for EGP 7.63 in the black market on Saturday, weaker than the official price of EGP 7.58.
Abu Basha expected such restrictive measures to continue.
"We need to see improved liquidity in the banking system, which is already happening as less dollars are leaving the system, but it's not happening at the rate that can ease the backlog," adding that this would probably be partially resolved by GCC pledged deposits making it to the CBE.
Egypt is due to receive in days a total of $3bn in deposit from Saudi Arabia and the UAE. This is part of a $12.5bn investment which GCC monarchies pledged during the recent Economic Summit, along with Oman and Kuwait, in the form of assistance, investments or deposits.


Clic here to read the story from its source.