Egyptian Pound Drops to 53.18 per Dollar, Lowest Level Since May
The Egyptian pound dropped to 53.18 to the dollar in October 15 trading, its lowest level since May, under pressure from energy imports, regional tension, and rising US Treasury yields.
The Central Bank of Egypt set the dollar rate at 53.04 pounds for buying and 53.18 pounds for selling in October 15 trading, marking the pound's lowest level since last May, according to SEE News.
The report attributed the pressure on the Egyptian currency to rising energy import costs, regional tension, and climbing US Treasury yields, factors that increase demand for the dollar against the pound.
In contrast, data showed continued improvement in reserves, with foreign currency reserves reaching a record level of $57.35 billion in September, providing greater leeway for the central bank to manage the exchange market.
Traders in the market track the daily movement of the pound against the dollar, as the central bank determines buying and selling rates that guide banks in their transactions, and any shift in the exchange rate is reflected in the cost of imported goods.
What do these terms mean?
Buying and selling rate: Two rates set by the central bank at which it buys or sells dollars from and to banks, used by the market as a reference.
Foreign currency reserves: Assets in foreign currencies held by the state to cover its imports, support its currency, and service its external debt.
Regional tension: Increasing political and security risks in the region, prompting investors to hedge and seek hard currencies.
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