The US dollar has seen a significant jump in Egypt, surpassing the 50 EGP mark for the first time. It reached 50.27 EGP for sale in local banks, with Abu Dhabi Islamic Bank recording the highest buying rate at 50.18 EGP and the selling rate at 50.27 EGP.
Key Drivers of the Surge
This increase follows recent geopolitical developments in Syria and global financial shifts, sparking heightened concern in the market. In Egypt, Prime Minister Dr. Mostafa Madbouly reaffirmed the government’s commitment to a flexible exchange rate policy, emphasizing the unrestricted movement of the US dollar. He attributed the volatility to international factors, including the ongoing US elections, which have bolstered the dollar’s strength globally.
Market Dynamics
The dollar’s rise comes after a brief period of stability, reflecting the fluctuating state of Egypt’s economy. Operating under a supply-and-demand model, Egypt’s currency market has seen no disruptions in commercial operations, according to Madbouly.
Future Outlook
Economic analysts predict further fluctuations in the exchange rate as external and domestic pressures persist. The Egyptian government has pledged continuous monitoring to ensure market stability amidst ongoing challenges.