Egyptian pound continues upmove against US dollar on increased FX inflows

The Egyptian pound continued its appreciation against the US dollar on Monday, supported by an increase in foreign exchange (FX) flows into the Egyptian market.

The US dollar value lost 32 piasters against the local currency, reaching EGP 15.90 to buy and EGP 16 to sell, compared to about EGP 16.20 to buy and EGP 16.30 to sell recorded one month ago.

A banking official told the Middle East News Agency (MENA) that international financial institutions and funds have injected new investments estimated at about $3bn into the Egyptian market in the past month. This includes nearly $1bn inflows on Thursday and Sunday alone.

“The Egyptian market attracted about $592m in new investments from international funds and portfolios last Thursday alone, which is the highest daily level since the coronavirus pandemic crisis started, while on Sunday it received about $367m,” the source said.

In the recent period, Egypt has received cash injections from the International Monetary Fund (IMF) and the international market, estimated at $10bn. This includes $4.8bn from the IMF, of which a $2.8bn tranche was granted as part of the fund’s rapid financing instrument (RFI) package. A further $2bn was pumped into the country as the first tranche of the $5.2bn credit line agreement, in addition to $5bn from the international bond market.

The cabinet said that in the three-year period from 30 June 2017 to 30 June 2020, the Egyptian pound has maintained a good performance. It has remained the most coherent among emerging market currencies against the US dollar, and the least affected by the repercussions of the novel coronavirus (COVID-19) pandemic.

It added that this reflects the government’s successful policies in managing the country’s economic file. It added that the Egyptian government has taken the necessary measures to improve the country’s economy at all levels.

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