The US dollar has risen to EGP 12 on the informal market, driving other foreign and Arab currencies to rise to record highs.
The dollar rose to EGP 12.15-12.30 Sunday on the informal market, amid a severe shortage in supply, coupled with strong demand.
According to the Central Bank of Egypt (CBE), the pound sterling registered EGP 11.67 to buy and EGP 11.70 to sell on Thursday and Sunday morning, after the weekend. On the informal market, however, it recorded EGP 16 to buy and EGP 16.25 to sell—a difference exceeding EGP 4.35.
As for the euro, the price stood at EGP 9.79 to buy and EGP 9.80 to sell on the official market, but the price on the informal market was boosted to EGP 13 for buying and EGP 13.5 for selling—a difference of almost EGP 3.25.
Arab currencies also registered significant differences between the official and unofficial exchange rates. Saudi riyals on the parallel market registered EGP 3, versus EGP 2.36 on the official market. Moreover, the Emirati dirham is trading at EGP 3.25 unofficially, while on the official market it recorded EGP 2.40.
Pricing Arab and foreign currencies traded in the market relies on their global prices against the US dollar, multiplied by the dollar exchange rate against the Egyptian pound on the Egyptian market, according to Tamer Youssef, head of the treasury at a foreign bank operating in the Egyptian market.
He explained that any change to the dollar exchange rate against the Egyptian pound immediately reflects on the price of other currencies. He pointed out that there is no relation between the rising prices of other currencies in the market and the real demand on them.