The US dollar exchange rate continued its steady rise against the Egyptian pound to reach EGP 11 in the informal market for the first time, multiple traders in the informal currency exchange market in Egypt said on Tuesday.
The Egyptian pound’s value depreciated by 15 piasters on Tuesday morning, increasing from the previous exchange rate of EGP 10.85 to EGP 11 per US dollar.
Traders expected the US dollar to continue its increase against the Egyptian pound in light of erosion of foreign currency resources caused by a decline in tourism, weak foreign direct investment, and increasing imports.
The CBE provides the US dollar to banks in the local market at a rate of EGP 8.78, while it is sold to individuals at commercial banks at EGP 8.88.
The CBE has been unable to regulate the rising price of the US dollar in the informal market during the past period, whether by the holding exceptional auctions to meet banks’ US dollar requirements, or by threatening to close exchange companies.
The rapid decline of the Egyptian pound against the US dollar led to another decline of the Egyptian pound against other major currencies, which jumped at high rates in the informal market. The exchange rate of the euro against the Egyptian pound in the informal market rose by EGP 0.5 on Tuesday, recording EGP 12.5, compared to EGP 12 on Monday.
The British pound’s exchange rate against the Egyptian pound also rose in the informal market by EGP 0.6, to register EGP 15.25 per British pound compared to EGP 14.65 Monday. The Saudi riyal’s exchange rate against the Egyptian pound increased by EGP 0.12, recording EGP 2.87 per riyal, compared to EGP 2.75 on Monday.