The US dollar climbed to EGP 18 on Monday at banks operating in Egypt. The average rate for the dollar at most banks on Monday registered EGP 17.55 to buy and EGP 17.95 to sell. HSBC Bank was offering to sell US dollars at EGP 18.
The dollar has been gaining ground against the Egyptian pound over the past 10 days, which alarmed the market.
The three state-owned banks—the National Bank of Egypt, Banque Misr, and Banque du Caire—were trading the greenback at EGP 17.45-17.57 to buy and EGP 17.80-17.85 to sell.
Mohamed Abdel Aal, a board member of both the Suez Canal Bank and the Arab Sudanese Bank, said that it is neither good nor necessary for the US dollar price to follow a downtrend so early after the flotation of the national currency.
Abdel Aal added that the variation in exchange rates among banks and its movement is normal. “The new exchange rate policy needs an appropriate period to pass through the transition phase and ensure the effectiveness of the market,” he explained. “The availability of the greenback and the emergence of market-shaping banks and primary dealers who would cover the demand and set a fair price might take some time.”