Subscribe to receive economic news The average official exchange rate of the dollar against the pound in the central bank yesterday increased by 9 piasters to buy and 8 piasters for sale to record 17.84 pounds for purchase and 17.98 pounds for sale, while the Saudi riyal fell against the pound.
According to central bank data, the exchange rate of the dollar against the pound rose since the beginning of last week by about 13 piasters for buying and 11 piasters for sale. The increase in the price of the dollar locally Which is attributed to the high demand for the dollar globally, predicting the continued increase in the dollar prices locally until global prices stabilize, adding that the exit of foreign investors from government debt instruments Does not affect the currency value, p In the presence of other dollar resources of the State. The rise of the dollar against the pound is likely to be one of the reasons that there has been a sell-off by some external investors in government debt instruments, albeit a small percentage of total investments in government debt instruments, said Mohamed Abul-Gheit, chief investment officer at Pioneers Holding. This is mostly due to the emergence of debt instruments and bonds in other countries such as Argentina with a return of up to 40% and it is very likely to become a destination for investments under this high return. The government has issued up to $ 23 billion of its own debt so far as part of a plan announced in its economic and social reform program. Abul-Gheit said that this has nothing to do with the government and its economic performance, which is well documented by the existence of reports from the International Monetary Fund (IMF), praising the outstanding performance of the economic reform program, as well as the last classification issued last week by Standard & Poor’s, which improved Egypt’s classification. Performance, economic indicators and the ability to meet their commitments and increase their external borrowing capacity. Dr. Mohamed Fouad, a member of the House of Representatives, gave a briefing to Dr. Ali Abdel-Aal, the President of the Council, addressed to Prime Minister Sherif Ismail and Minister of Finance Dr. Amr El-Garhy regarding the statements made by the Governor of the Central Bank and his policies, According to MP. MP Amr Ghellab, chairman of the Economic Committee of the House of Representatives, said that the reasons for the recent rise in the dollar rate are not known, and that the Central Bank’s analyzes will explain this. He added that it is necessary to first know the reasons before putting forward any utterances and the role that the central bank will play after listening to experts and economists. He pointed out, in statements to «Al-Masry Al-Youm», that the month of Ramadan may be one of the reasons because it is a large market and is witnessing demand and demand for the dollar may lead to higher price, especially that there are a large number of foreigners residing in Egypt on holidays in this period, Increases the demand for the dollar, and may be linked to the price of Umrah. He added that the local market has become free in currency trading, and moving the price is very natural, because its stability means that there are those who installed it. He said: “People need to know what it means to be a free market, because the demand for the dollar would increase if the price is lower.” , Adding that it is necessary to study the nature of the market and to identify the reasons. He pointed out that the Economic Committee will continue with the Central Bank to know the situation, and the Bureau of the Committee will meet to study the matter, even if it required an expanded meeting of the Committee, in the presence of representatives of the government, will do so. He attributed the rise in the dollar exchange rate against the pound in the recent period to the dividends of foreign investment companies operating in the local market in dollars, in addition to the departure of some foreign investors in the world, and the search for the highest interest rates in Argentina, amounting to 40% recently. Globally, the results of a survey by Bank of America Merrill Lynch revealed this month that 30% of fund managers pointed to three risks to the global economy: a mistake in the policies of the Federal Reserve Bank of the United States, the European Central Bank, And fears of a “trade war”, in addition to concerns left by “geopolitical” conditions that could cause oil prices to reach $ 100 a barrel. The results of the survey issued yesterday by Al-Masry Al-Youm showed that 79% of fund managers participating in the questionnaire expected the CPI to rise in the next 12 months. , With 1% of investors expecting a stronger global economy over the next 12 months, the lowest level since February 2016. “2% of investors polled predicted a global economic recession this year, while the total view was that in the first quarter of 2020, despite the split of investors, with 41% expecting a global economic recession in 2019, while 43% expect it to happen in 2020 ».