The Egyptian pound fell against the US dollar at the Central Bank of Egypt (CBE) and other Egyptian banks on Tuesday. The banks confirmed that the dollar pricing mechanism is subject only to the principle of supply and demand. They added that the highs and lows in the value of the pound are natural after the liberalisation of the exchange rate.
The dollar price increased at the CBE on Tuesday to EGP 17.7376 for buying and EGP 18.0676 for selling, compared to EGP 17.5632 for buying and EGP 17.9314 for selling on Monday.
At banks, the highest price of the dollar on Tuesday reached EGP 17.8 for buying and EGP 18.25 for selling.
A number of banking leaders told Daily News Egypt that the fluctuations experienced by the Egyptian pound against the dollar since the liberalisation of the exchange rate on 3 November are normal, pointing out that the market is controlled only by the supply and demand of foreign currency.
The banking leaders expect the market to stabilise once the state secures enough foreign currency.
Fathi Sebaey, chairperson of the Housing and Development Bank, refuted the rumours that the banks increase the dollar price to keep up with the informal market, pointing out that the unofficial market no longer exists.
He added that the dollar exchange rate is controlled by supply and demand. When banks need dollars to cover their customers’ requests, they increase the price of the dollar to attract customers. If the banks are not in need of dollars, they reduce its price.