Egypt exchange rate rises to 45 pounds per USD after interest rate hike

On Tuesday Egypt's Central Bank raised interest rates 600 basis points to 27.25%, effectively leading to a local devaluation

By Anadolu staff

ISTANBUL (AA) – Following a sharp interest rate hike, Egypt’s official exchange rate reached 45 Egyptian pounds per US dollar, local media reported on Wednesday.

The exchange rate at private bank Credit Agricole jumped to 45.1 pounds per dollar, while the National Bank of Egypt rate was 43 pounds per dollar, reported news website Cairo24.

The daily Youm7 website also said the private Commercial International Bank traded the US dollar for 46 pounds in buying and 46.1 pounds for selling.

The exchange rate shift, amounting to a local currency devaluation, follows Egypt's Central Bank raising interest rates 600 basis points to 27.25% on Tuesday.

For the past 10 months, the official exchange rate had stood at 31 pounds per dollar, while on the black market (parallel market), the dollar was traded for 70 pounds three weeks ago, and last week was traded for 48 pounds.

Since March 2022, the Central Bank has moved the exchange rate of the pound per dollar three times, as its average rate before 2022 stood at 15.7 pounds per dollar.

*Writing by Ahmed Asmar

Kaynak:

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