Dollar Surpasses 55 Pounds for First Time as Banks Record 55.37

The US dollar exchange rate surpassed 55 Egyptian pounds for the first time during trading on Thursday, October 22, as the selling price reached 55.37 pounds at Al Baraka Bank, and 55.35 pounds at the National Bank of Egypt and Banque du Caire, according to Egyptian Streets. This level represents an important psychological milestone in the Egyptian exchange market, as it is the first clear crossing of the 55-pound barrier.

Five banks raised their rates by about 0.90 to 0.92 pounds in a single session, a significant daily movement by local exchange market standards, meaning the dollar became nearly a full pound higher than its level in the previous session.

Data from the TradingEconomics platform showed that the USD/EGP pair recorded 55.30 pounds, up 1.69%, describing it as an all-time high, with the pound declining 16.20% over 12 months, indicating that pressure on the local currency persisted over an entire year. This pair is used as a benchmark for importers and banks when pricing international transactions.

Surpassing the 55-pound barrier increases pressure on the cost of imports and foreign currency-denominated goods, making the tracking of bank exchange rates even more crucial for investors and importers. It also raises the cost of foreign borrowing and shrinks margins for companies reliant on imported inputs. These pressures push companies to reprice their contracts in dollars, which could be reflected in local goods and services prices.

What do these terms mean?

Selling rate: The price at which the bank sells dollars to the customer, usually higher than the buying rate at which the bank purchases foreign currency from the customer.

USD/EGP pair: An exchange rate showing how many Egyptian pounds are required to buy one US dollar; the figure rises as the pound weakens.

Exchange rate: The value of a country's currency against another currency, determined in Egypt by the Central Bank and operating banks in the market.