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Improved exchange rate Egyptian bookAgainst foreign currencies, significantly from this year.
Given the exchange rate Egyptian book, Which has risen 3% since December 2018 until mid-March, when the dollar lost about 65 piastres worth against the pound sterling, from the beginning of this year to today, where the dollar price to 17.78 pounds to buy 17.88 pounds on sale in early January 2019, while the day recorded 17.24 pounds on the purchase and 17.34 pounds on sale.
The news portal of today offers its readers the secret of value enhancement Egyptian book Against the US dollar in recent months.
Flexibility adopted Egyptian book The Egyptian pound has not experienced any significant fluctuations since its sharp decline in 2016. The rise in inflation in 2017-2018 has resulted in a significant decline in earnings from the competitive advantage of the pound in the first step, but the cancellation by the Central Bank of the mechanism of transfer of profits Foreign investors have helped to mitigate the upward or downward pressures exerted on the currency by portfolio flows and by the return of investments in the investment portfolio (equivalent to 25% of the value of previous outflows) Egyptian book 3% against the dollar until mid-March.
The return of international institutions' confidence in the Egyptian market and the return of cash flows from international institutions have contributed to the rise in the value of Egyptian bookIn addition to the Ministry of Finance, has announced the issuance of international bonds worth $ 4 billion in 3 segments (5-10 years – 30 years) at attractive prices, in light of applications for subscription exceeding $ 21.5 billion after the announcement of the issuance of international bond markets In addition to the receipt by Egypt of the fifth tranche of the IMF loan of $ 2 billion, the Foreign investment balance in Treasuries and bonds in the Egyptian market rose to about $ 15.8 at the end of February.
At the end of December, data from the Egyptian Central Bank showed that foreign investment in local currency treasury bills had increased for the first time in 10 months in January, reaching $ 13.2 billion, up 2, $ 5 billion compared to December.
The cancellation by the central bank of the fund-raising mechanism for foreigners and the banks responsible for the process has helped to create liquidity and an abundance of currencies in the banks.
A senior Egyptian Central Bank official said in a press release that for the first time, the domestic market had recorded the return of international funds of funds to invest heavily in the Egyptian market and that the Egyptian market had recorded inflows of of about a billion dollars during the month of January from foreign investment funds in the authorizations. Treasury bonds and the Egyptian stock market, after recording an outflow of $ 1 billion to $ 2 billion a month, increased their dollar resources on the interbank market after the Central Bank's decision to terminate the mechanism for transferring funds foreign investors in the past month.
Tariq Amer, Governor of the Central Bank of Egypt, said at the time that this decision would have positive effects on the economy and would strengthen the confidence of foreign investors in the economic reform program set in motion. implemented by Egypt a few years ago, since the decision taken since the liberalization of the exchange rate in November 2016. The liberalization of the exchange rate in just two years of implementation has made it possible to remedy the shortage of foreign exchange supplies, which had hampered economic activity in the past, leading to a marked improvement in the foreign exchange resources of the Egyptian economy. November 2016 at about 111 billion dollars T.
Karek Amer pointed out that, as part of the process of exchange rate liberalization, distortions in the national foreign exchange market have been corrected and that supply and demand forces determine the level of the exchange rate. on the market.
"We are committed to ensuring that the market is free and subject to the forces of supply and demand, but we also have reserves that help us fight against speculators or unregulated market practices. , and reserves that help the defense, "said the governor of the central bank in an interview with Bloomberg. The new exchange system, adding a rate of interest can be used as a tool.
Tariq Amer added that the lack of market derivatives also protected the turmoil in emerging markets. The uncertainty that hit emerging markets last year led to the release of about $ 10 billion from Egypt, stating that: The first positive net cash inflows since January have have been positive. May 2018.
Despite the outflows, we have an investment portfolio of more than $ 10 billion, whose reserves have declined slightly despite the outflow of investments, reflecting the resilience of the Egyptian economy.
The exchange rate was about 17.24 pounds at the time of purchase and 17.34 pounds for sale at Ahli Bank of Egypt, Egypt, Cairo, United Bank, Arab Investment Bank, Suez Canal Bank and Commercial International Bank of Egypt.
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