US dollar rate drops in major banks by 1.5% on Tuesday to EGP 48.8/1 USD

The buying rate also decreased by the same average to reach EGP 48.7/1 USD, down from EGP 48.9/1 USD recorded on Monday and EGP 49.4/1 USD posted on 6 March.

The US dollar rate also saw a reduction in most banks to EGP 48.7/1 USD, including HSBC, Credit Agricole, the National Bank of Egypt, and Banque Misr.

On the other hand, Monday’s level of EGP 49/1 USD was maintained at a group of banks including the Housing and Development Bank, Alex Bank, and Abu Dhabi Islamic Bank.

In an unscheduled meeting, the CBE hiked last week the key interest rates by an unprecedented six percent (600 bps) and floated the local currency, allowing it to be determined by market forces.

As a result, the US dollar rate significantly jumped on 6 March by over 60 percent to EGP 49.5/1 USD, according to the CBE announced rates.

Last week, the IMF announced an expansion for the ongoing Extended Fund Facility (EFF) arrangement for Egypt from $3 billion to $8 billion in response to the global and regional escalations that have harshly affected the Egyptian economy.