The official price of the US dollar at the Central Bank of Egypt (CBE) jumped on Wednesday by EGP 2, to reach EGP 29.63 for purchase and EGP 29.76 for sale, setting a new record in the local market. Since the start of its surge last Thursday, the dollar price increased by a total EGP 4.92 within 5 working days at banks. The International Monetary Fund (IMF) stressed on Tuesday that the Central Bank of Egypt should commit to a flexible exchange rate that adapts to the dynamics of the balance of payments, avoid the re-accumulation of imbalances, and support competitiveness. The Fund said that the Central Bank of Egypt should allow the exchange rate to reflect the conditions of supply and demand for foreign currencies in the economy, and the Central Bank also stops direct provision of foreign currencies from reserves to finance the imports of government entities to allow this demand to be reflected in the interbank foreign exchange market. That although the central bank may occasionally intervene in times of excessive exchange rate volatility, there will be no recourse to exchange rate interventions or the use of net foreign assets of banks with the intent of stabilizing or ensuring the level of the exchange rate. The fund stated that the Central Bank of Egypt's interventions in the foreign exchange market, if necessary, will be directed through a volatility-based intervention framework. The average price of the dollar in banks jumped by about EGP 2.06 at the end of Wednesday trading to reach EGP 29.6536 for purchase and EGP 29.7431 for sale, compared to EGP 27.5917 for purchase and EGP 27.6767 for sale on Tuesday, according to official figures issued by the Central Bank of Egypt. Thus, the total increase in the price of greenback in banks reached approximately EGP 4.93, compared to EGP 24.7083 for purchase and EGP 24.785 for sale, before it went up last Tuesday. The price of the dollar in banks today reached record levels, as it broke the barrier of EGP 32 in a large number of banks, before falling again before the close of trading, directly to the level of EGP 29.7 pounds. The rise in the price of the dollar prompted the prices of other major currencies traded in the local market to rise against the pound as well, as the price of the euro reached EGP 31.8717 for purchase, EGP 31.9797 for sale, while the price of the pound sterling recorded EGP 35.9075 for purchase and EGP 36.0278 for sale. The price of the Kuwaiti dinar jumped to EGP 96.8629 for purchase and EGP 97.2504 for sale, while the price of the Saudi riyal reached EGP 7.8939 for purchase and EGP 7.9197 for sale.
