Shaimaa Hefzy

The dollar recorded a new decline against the Egyptian pound in local banks, amid anticipation of a US-Iranian agreement that would reduce geopolitical tensions in the Middle East, which have put pressure on the local currency since they erupted at the end of last February.

By 2:40 PM on Monday, the first working day after the Eid al-Adha holiday, the dollar was trading at around 51.9 Egyptian pounds for buying and 52.07 pounds for selling in local banks. The dollar remains below its previous record high of nearly 55 pounds, reached due to the repercussions of the war.

According to data from the Central Bank of Egypt, the exchange rate on Monday was around 52.07 Egyptian pounds, down from 52.4 pounds at the last close before the Eid al-Adha holiday.

Egypt, which relies heavily on imports to meet its basic needs, is facing the repercussions of the war, which has caused a rise in oil prices, the closure of the Strait of Hormuz, the flight of hot money, and the disruption of shipping traffic in the Suez Canal, putting pressure on the local currency and pushing the dollar to record levels.

To counter the repercussions, Egypt has raised $2 billion from international markets since the outbreak of the war, through the issuance of $1 billion in social bonds, preceded by another $1 billion through the issuance of additional tranches of existing bonds.

For more: Egypt raises $1 billion through 8-year social bonds - details

(Prepared by: Shaimaa Hefzy, for contact: zawya.arabic@lseg.com )

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