The Egyptian pound has regained some of its strength against the US dollar at banks and the Central Bank of Egypt (CBE), recovering from its lowest level since the decision to float the currency on 3 November.
The price of the dollar at the CBE on Sunday registered EGP 17.5995 for buying and EGP 18.0354 for selling, versus EGP 17.6765 for buying and EGP 18.1127 for selling on Thursday.
In banks, the buying price ranged between EGP 17.5-17.77, while selling ranged around EGP 17.75-18.2.
On Wednesday, the dollar recorded its highest level at the CBE since the flotation at EGP 17.7486 for buying and EGP 18.1462 for selling.
A number of bankers told Daily News Egypt that the volatility of the exchange rate since the flotation decision on 3 November is natural, and controlled by supply and demand on the greenback.
They expect the price to stabilise and the pound to gain ground against the US dollar and other currencies once the state revenues of hard cash increase.
Yehia Aboul Fotouh, vice chairperson of the National Bank of Egypt (NBE), said that the flotation decision placed the price of the pound subject to supply and demand. “The price going up and down more than once a day is normal,” he said.
He told Daily News Egypt that all countries that followed the same policy saw volatility in their national currency value before stabilising. He noted that the availability of foreign exchange to cover demand on imports is more important than the volatility itself.