The price of the dollar on the parallel market in Egypt continues to fluctuate, registering a further increase during Wednesday’s transactions to reach 63 Egyptian pounds (LE), according to the “Investing” platform. This represents an increase from the LE60 recorded during Tuesday’s trading, following a record drop in recent days.
Experts believe that there are several reasons that led to these losses for the dollar in the parallel market, which could also lead to further declines in the coming days.
First, falling demand from importers due to unprecedented increases in dollar exchange rates. Additionally, Egypt’s Central Bank raised interest rates by 200 basis points to combat inflation, while authorities have stepped up their crackdown on large black market currency dealers in recent days.
In addition, there are possible flows of foreign investment into the country, particularly from the European Union. Negotiations between the Egyptian government and the International Monetary Fund to increase Egypt’s financing program are also a positive indication.
At the National Bank of Egypt, the dollar exchange rate was LE30.75 for buying and LE30.85 for selling on Thursday. And at the CIB, the dollar exchange rate was LE 30.85 for buying and LE 30.95 for selling.
These fluctuations in the price of the dollar on the parallel market have a significant impact on the Egyptian economy. Importers face higher costs and this can impact product prices for consumers. The stability of the exchange rate is therefore of paramount importance to maintain the economic balance of the country.
The Egyptian government and the Central Bank are taking steps to try to stabilize the foreign exchange market. Recent initiatives to combat the black market and attract foreign investment are steps in the right direction. However, it is important to continue to closely monitor developments and take necessary measures to ensure a stable and prosperous economy for the country.