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Volatility of FX rate hiked mobile phone prices over one year - Daily News Egypt

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Volatility of FX rate hiked mobile phone prices over one year

Companies resorted to the black market to secure their pre-flotation US Dollar rate

The volatility of the foreign exchange rate for the pound to the dollar in November until this week had an impact on the prices of electronics, especially mobile phones and tablets. Prior to flotation, the US dollar price at banks was unchanged at EGP 8.88, but with a severe shortage in quantity, companies were forced to secure hard cash through the black market, according to business officials who spoke on the condition of anonymity. The price of the greenback on the black market approached EGP 20, which had a direct effect on prices.

Manufacturers of mobile phones had to amend their pricing policies and change the prices on a weekly basis, due to the volatility. Following the flotation, the price of the greenback jumped to EGP 14.2 to sell; before the end of November, it settled at EGP 8.1 to sell.

In December, the price continued climbing to reach EGP 19.5 to the pound, before falling at the end the month to EGP 18.3 to sell, according to the Central Bank of Egypt (CBE).

The CBE statistics show that the US dollar hiked back up in January, reaching EGP 18.9 to sell in the last week. In the following month, the price went down to EGP 17.9 to sell, settling at its lowest post-float price at EGP 15.8 by the end of February. This did not last long, as the price now is taking a trip upwards, at an average of EGP 16.4.


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