The Central Bank of Egypt (CBE) launched on Tuesday its regular weekly auction to sell US dollars to banks with the value of $120m.
The auction fixed the US dollar exchange rate at EGP 8.78; as a result, banks will sell it at EGP 8.88.
According to Osama El-Menilawy, the assistant general manager of the financial sector at a private bank operating in Egypt, it was highly expected that the CBE would launch a regular auction without any change in its size or the Egyptian pound’s price.
El-Menilawy explained that the CBE did not ask for any unusual data on the outstanding volume of dollar applications at banks, asserting that the CBE is not intending to launch any exceptional auctions.
He expects that the CBE will not change the price of the Egyptian pound for the moment, at least not until after 11 November, in order to avoid any negative repercussions that could occur.
Recently, there have been calls to revolt against the regime on 11 November to protest against poor living conditions and price hikes on basic commodities. Many in the financial sector hope that the day will pass in relative peace so that offices can move forward with other financial matters.
It is not logical that the state reduce the price of the pound before 11 November because this action will cause commodity prices to further increase and will serve to incite the people’s anger, El-Menilawy said.