The Central Bank of Egypt (CBE) decided on Tuesday to stabilise the dollar price after two increases on Thursday and Sunday, when the dollar increased by 20 piasters.
The dollar exchange rate stabilised at EGP 7.7301, while it was at EGP 7.78 for bid prices in banks and at EGP 7.8301 for asking prices.
“Fixing the dollar price by the CBE and banks is only temporary. It is expected that CBE will raise the dollar rate against the Egyptian pound again in the next few days,” said Haitham Abdel Fattah, Director General of the Treasury of the Industrial Development and Workers Bank of Egypt.
Abdel Fattah stated that the dollar price may increase gradually against the Egyptian pound at roughly EGP 0.03 each time.
He expects that the dollar price will reach a maximum of EGP 7.95, and is unlikely to reach EGP 8 at the current time.
The CBE raised the dollar rate for the first time on 18 January to EGP 7.23 from EGP 7.18. Last Thursday, the CBE increased the dollar exchange rate against the Egyptian pound again by 10 piasters, before issuing another rise of 10 piasters on Sunday, to reach EGP 7.8301.
The price of the dollar against the Egyptian pound is now at its highest rate in the formal market, while it had surpassed this level in the informal market prior to the devaluation of the Egyptian pound.