The exchange rate of the US dollar against the Egyptian pound has remained relatively stable on August 11, 2024, with only minor fluctuations observed across various Egyptian banks. The Central Bank of Egypt reported a rate of 49.23 EGP for purchase and 49.33 EGP for sale, with other major banks showing similar rates with slight variations. This stability comes amid a complex economic landscape, with potential challenges on the horizon.Economist Hani Gennina has warned of possible significant exchange rate fluctuations in the near future. He attributes this potential volatility to two main factors: the pressure of foreign investors withdrawing their investments from Egyptian treasury bonds and the upcoming review by the International Monetary Fund (IMF) of Egypt’s economic reform program in September. Gennina suggests that these factors could lead to fluctuations of up to 50 piasters in the exchange rate.Meanwhile, gold prices in Egypt have seen a slight increase. The price of 21-karat gold, the most traded in the Egyptian gold market, rose to 3475 Egyptian pounds per gram, a 15-pound increase from the previous day. This increase aligns with global gold prices, which stood at $2431 per ounce.Despite these potential economic challenges, some positive indicators remain. Hani Milad, head of the gold section at the Egyptian Chambers of Commerce, expects gold prices to continue rising in Egypt, viewing it as a popular investment option and a hedge against economic fluctuations. Milad also called for the reinstatement of customs exemption on gold, which he believes could help balance global and local prices, potentially reducing pressure on demand and increasing supply.As Egypt navigates these economic waters, the stability of its currency and the performance of gold prices will remain key indicators to watch in the coming weeks and months.
Key points
- The US dollar to Egyptian pound exchange rate remains stable at around 49.
- Economist Hani Gennina warns of potential significant exchange rate fluctuations due to foreign investor withdrawals and an upcoming IMF review.
- Gold prices in Egypt have slightly increased, with 21-karat gold reaching 3475 Egyptian pounds per gram.
- Hani Milad, head of the gold section at the Egyptian Chambers of Commerce, expects gold prices to continue rising and calls for reinstatement of customs exemption on gold.
3 EGP.
Contradictions👾While most sources report stability in the US dollar to Egyptian pound exchange rate, economist Hani Gennina warns of potential significant fluctuations, creating some uncertainty about the short-term outlook for the currency.
