The Central Bank of Egypt (CBE) maintained the price of the Egyptian pound exchange rate in the tender sale of foreign currency to banks on Thursday, at EGP 8.03 for a dollar.
According to banks experts, CBE offered $40m in the same tender, for the same rate of the previous tender, meeting the expectations of experts to during the past few days that CBE will not allow a new depreciation of the Egyptian pound against the dollar until the end of 2015.
Three exchange companies operating in the Dokki district confirmed to Daily News Egypt that the dollar trading, selling and buying, is experiencing confusion in anticipation of new decisions that may be taken by the new CBE governor Tarek Amer, the successor of Hisham Ramez.
They said the dollar is currently traded at value between EGP 8.40 and 8.55, down from about EGP 8.65 in some exchange companies during transactions over the past few days.
President Abdel Fattah Al-Sisi assigned former president of the National Bank of Egypt Tarek Amer to be governor of CBE on 21 October for a term of four years, effective from 27 November, 2015. Amer replaced Hisham Ramez, who recently resigned because of certain pressures.
CBE allowed the pound to drop a total of 20 piasters since the beginning of October, bringing the price at banks to EGP 8.03 to the dollar. CBE allowed the decline of the Egyptian pound price against the dollar to the level of 7.53 last January after fixing it for more than six months at EGP 7.14.
It then expanded the margin buying and selling of dollar in banks for a range higher or lower than the official price by up to10 piasters, with the addition of 5 piasters of exchange offices.
In July 2015, CBE allowed a new depreciation of 20 piasters so the value was EGP 7.73 for the dollar then decreased it again by another 20 piasters this month.
Pharos Investment Bank anticipates that Amer will continue on the policy of decreasing the value of the Egyptian pound against the dollar at a faster rate.
