Egyptian pound stabilizes against US dollar
The currency traded at EGP 52.50 for buying and EGP 52.64 for selling on Sunday, down by EGP 0.11 from EGP 52.62 for buying and EGP 52.76 for selling on last week’s closing on Wednesday, as it was an official holiday, in observance of Labour Day.
The US dollar this Sunday traded EGP 0.94 or 1.8 percent less than last Sunday, where it registered EGP 53.45 for buying and EGP 53.59 for selling.
The stabilization of the pound comes after it surpassed the EGP 53 mark at the start of May, due to escalating geopolitical tensions in the region.
This has continued to weigh on the market in terms of inflation and capital outflows. Tighter monetary conditions are expected as the CBE’s Monetary Policy Committee is scheduled to meet on 21 May to decide on key interest rates.
Across local lenders, the currency traded at the highest rates on Sunday, between EGP 52.82 and EGP 52.51 for buying and between EGP 52.92 and EGP 52.61 for selling, across 11 banks, including HSBC Bank, Suez Canal Bank, and Al Ahli Bank of Kuwait.
The lowest rates recorded were EGP 52.50 for buying and EGP 52.60 for selling, across two banks, Al Baraka Bank and Egyptian Arab Land Bank.
The pound has depreciated by EGP 4.6 on Sunday, and lost 9.7 percent of its value from its pre-conflict level of EGP 47.9 per dollar. This is an improvement from last Sunday’s 11.7 percent.
Other currencies
The euro also remained stable, trading at EGP 61.87 for buying and EGP 62.05 for selling, down from EGP 62 and EGP 62.2 on Wednesday. The European currency remains roughly EGP 5.41 higher than its pre-conflict level.
The British pound traded at EGP 71.57 for buying and EGP 71.78 for selling, compared to EGP 71.8 and EGP 71.95, respectively, on Wednesday. It remains almost EGP 7 above its pre-conflict level.
Gulf currencies showed similar activity, with the Kuwaiti dinar trading at EGP 172.01, the Bahraini dinar at EGP 139.56, the Omani riyal at EGP 136.74, and the Jordanian dinar at EGP 74.33.
According to Central Bank of Egypt data, the Gulf currencies depreciated between EGP 1.23 and EGP 12.26 against the Egyptian pound since the outbreak of the conflict.
Gold
Meanwhile, gold prices increased slightly after remaining stable for the majority of last week. The gold sovereign (geneih dahab) stood at EGP 56,000 on Sunday, increasing by EGP 80 from last week’s EGP 55,920 on Thursday, which is also an EGP 80 increase from Wednesday’s close of EGP 55,840, according to gold trading platform iSagha.
Meanwhile, 24-karat gold traded at EGP 8000 on Sunday, increasing by EGP 12 from EGP 7988 on Thursday, and by EGP 11 from EGP 7,977 on Wednesday.