Investing.com – The pound appeared to be on the cusp of a surprising rally on Wednesday, despite yesterday’s shock data release and the president’s rise to a 20-year high.
Despite the expectations of most observers that the Egyptian pound will be subjected to violent vibration and sharp declines, following the return of trading during the Eid al-Fitr holiday last week.
However, the Egyptian pound surprised everyone with its cohesion and stability near the levels of 18.5 pounds to the dollar, after a message from the Central Bank of Egypt, during which it reassured investors that the next time is unchanged.
According to the latest exchange rate of the US dollar at the largest local banks, the National Bank of Egypt, the exchange rate of the dollar fell within 11 piasters compared to yesterday’s prices.
The exchange rate of the US dollar in the middle of trading today, Wednesday, in the largest Egyptian banks, amounted to about 18.34 pounds / dollars for purchase and 18.4 pounds / dollars for sale.
Regarding the dollar exchange rate in the Egyptian market yesterday, Tuesday, the largest Egyptian banks, the National Bank, recorded a purchase price of 18.45 pounds, while the selling price reached 18.51 pounds.
Inflation rates exceeded the rates expected by the Central Bank of Egypt during April, thus putting new pressures on the Egyptian pound, amid expectations of a strong increase in interest rates in the next meeting in the range of 100 to 200 basis points.
The Central Agency for Public Mobilization and Statistics revealed that the monthly inflation rate in Egypt rose by 3.7 percent last April.
He explained that the general consumer price index for the whole of the Republic increased during last April to about 129 points, compared to 124.4 points in March, by 13.1% compared to 10.5%, while it was expected that it would rise to 11.8%.
The monthly inflation rate in Egypt rose in March 2022 by 2.4% compared to February 2022, which rose by 2% compared to January, which was high by 1% compared to December 2021, which was down by 0.2%, after it was stable. In November.
The report issued by the World Council for the year 2022 revealed that the Central Bank of Egypt purchased 44 tons of gold during the month of February.
The volume of gold at the Central Bank of Egypt increased by 54% to reach 125 tons at the end of February, or 17% of the total Egyptian reserves, which is the highest among the countries in the region.
And the Central Bank of Egypt announced last Sunday that net foreign reserves in Egypt rose by 41 million dollars last April, to reach 37.123 billion dollars, compared to 37.082 billion dollars in the previous March.
The Central Bank of Egypt said that the value of gold included in foreign exchange reserves also increased during February 2022 by about 2.703 billion dollars, to reach 6.907 billion dollars, compared to 4.204 billion dollars at the end of January 2022.
In contrast, the value of the listed foreign currencies decreased to $31.585 billion, compared to $34.141 billion, and the SDR balance amounted to $2.508 billion, compared to $2.2642 billion at the end of January 2022.