Dollar price in Egypt rises to LE48 up from LE42 last week

As per a report from the Egypt Independent, the price of the dollar against the Egyptian pound rose by at least five pounds last week, climbing beyond LE47 and reaching as high as LE48 as per the Al-Sarf Al-Youm website. This surge occurred despite the nation’s Central Bank of Egypt reporting an increase in net foreign reserves. The report states that this surge was due, in part, to a high demand for purchasing dollars because of persistent pressures arising from currency shortages in banks and money exchanges. Masrawy suggests that such a surge in demand might be linked to the deteriorating condition of the Egyptian pound's exchange rate, which has caused stagnation and crises in markets. Specifically, it was noted that the government's decision to raise the gas price by 14 percent last Friday, and the potential for a further increase in fuel, energy, and transportation costs in the early part of next year, are exacerbating the issues. These increases in costs are part of an agreement with the International Monetary Fund wherein there will be a liberalization of exchange and energy rates, according to Al-Sarf Al-Youm. This decline in the Egyptian pound’s value is happening notwithstanding the Central Bank’s announcement last Sunday that Egypt’s net foreign reserves rose to $35.102 billion in October from $34.97 billion in September.