Dollar Jumps to 56.35 EGP as $685 Million Exits Egypt

The US dollar rose to a new record high of 56.35 EGP on Monday, marking its third consecutive session of gains, according to the news website "Al-Manassa".

Foreign investors recorded net sales worth 38.6 billion EGP, or approximately $685 million, in stocks, treasury bills, and bonds. The Egyptian pound has declined by about 4 EGP since early October, when the dollar was trading at 52.39 EGP.

The website attributed the pressure on the pound to investor concerns over the widening conflict between Iran and the United States in the region—fears that intensified after President Abdel Fattah el-Sisi requested authorization from parliament to deploy military forces to defend Saudi Arabia, which the assembly approved on Monday.

Losses extended to the Egyptian Exchange for the third consecutive session, as its main index fell by 1.6%. Ezz Steel raised the price of a ton of steel by 1,200 EGP, attributing the increase to rising costs linked to the exchange rate. In the same context, Banque du Caire announced to the Egyptian Exchange that its private placement was six times oversubscribed, with public offering applications accepted through October 28. Egypt expects proceeds from the share sale to reach 36.4 billion EGP, or about $650 million.

What Do These Terms Mean?

Exchange Rate: The value of one currency against another, referring here to the number of pounds a buyer needs to obtain one dollar.

Treasury Bills: A short-term debt instrument issued by the government to borrow money for weeks or months, purchased by investors in exchange for a return.

Private Placement: The sale of company shares to major institutional investors prior to a public offering, with its price typically determined through a book-building process.