Egypt’s pound strengthens at banks as demand from importers eases


09/01/2017 05:36 AST

The Egyptian pound strengthened slightly at banks as demand for dollars by importers eased, bankers told Reuters on Sunday.

The dollar was being bought for around 18 pounds at most banks, down from around 19 last week. Banks were paying clients around 17.8 per dollar. “The demand for dollar is less,” said one banker.

“Banks have reached a point where they don’t need to keep raising prices to attract dollar inflows because there aren’t as many dollar requests by clients for the time being,” he said, adding that once demand picks up prices will start rising again.

Banks in Egypt had been raising the price to buy dollars from clients in order to attract inflows and cover requests from other clients seeking to buy dollars, but they say demand for dollars has eased over the past week.

Business activity in Egypt shrank for the 15th consecutive month in December, although at a slower pace than the previous month, as inflation caused purchase costs to rise at a near-record pace and new orders to drop as the Egyptian pound weakened against the US dollar, a survey showed on Wednesday.

While banks are prioritising imports of essential goods, private individuals are forced to buy dollars on the black market. Three traders on the black market said they were selling dollars at a range of 19.60-19.80 per dollar.

Egypt’s central bank abandoned its currency peg of 8.8 pounds to the US dollar on Nov. 3, hoping to unlock currency inflows and bring back foreign investors who were driven away after the 2011 uprising that ousted Hosni Mubarak.

Under the currency peg, dollar supplies were rationed by the central bank, forcing businesses to go to the black market for foreign currency. Bankers say it will take time for those dollars to be absorbed back into the banking system.

The currency peg drained foreign reserves, and analysts estimate the central bank is still around $10-15 billion short of the stock it needs.

Gulfnews
Forex News
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | News Archive
Most Viewed Companies
Ticker Price Volume
QNBK 140.2 89,927
SECO 24.11 799,660
GFH 0.58 10,000
SABIC 99.88 1,998,578
RIBL 10.76 308,413
BATELCO 0.23
EMIRATESNBD 8.09 167,938
Recent News

Almarai reports 2.38% rise in second-quarter profit
Saudi Arabia’s Almarai said its second-quarter net profit rose 2.38 percent to 674.1 million riyals, from a revised quarterly profit of 658.4 million riyals a year ago.

Revenue dropped 4.2 p

Saudi's NCB Q2 net profit flat, operating income down
Saudi Arabia's National Commercial Bank (NCB), the kingdom's largest lender, reported a 0.9 percent dip in second-quarter net profit on Sunday as a drop in operating expenses was offset by lower ope

Arabian Pipes Co. announces the Appointment of new CEO
Arabian Pipes Co. announces that the Board of Directors accepted during their meeting today 23 Jul 2017 that appointment of Eng. Ahmed Ali Al-Lohaidan as CEO starting from 24-07-2017 It's worth menti

Deyaar announces H1 2017 revenues of AED 316 million
Deyaar Development PJSC, one of the UAE’s leading property development and real estate services companies, today announced its financial results for the first half of 2017.

Deyaar reported %

Burgan Bank's H1 net income up 24pc
Kuwait-based Burgan Bank Group has registered a 24 per cent jump in its net income for the first half of 2017 which soared to KD39 million ($128 million) from last year's KD31.4 million ($103.5 milli

GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend

Poll

Looking ahead, what change you are more likely to make in investing in your domestic stock market?