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An increase in the dollar’s proceeds in banks and exchanges after the liberation of the pound, but it

05:49 PM

Wednesday 02 November 2022

I wrote – Manal Al-Masry:

Bankers and officials in exchange companies, whom Masrawy spoke to, said that customers’ demand for selling dollars doubled after the Central Bank’s decision to liberalize the exchange rate compared to the previous days, but it was still less than the normal days before the currency shortage crisis.

And 3 bankers in some banks told Masrawy that there are concessions among customers to sell the dollar after the decision to liberalize the exchange rate, but they are limited due to the customers’ anticipation of a further rise in the price of the dollar against the pound.

On Thursday, the Central Bank of Egypt announced the adoption of a flexible exchange rate system through which the exchange rate reflects the value of the Egyptian pound against other foreign currencies through the forces of supply and demand, “with priority given to the central bank’s primary objective of achieving price stability.”

The exchange rate of the pound witnessed a significant decline in recent trading, starting from last Thursday, and the price of the dollar rose against the pound by 22.6% (an increase of about 4.47 pounds), bringing the average exchange rate of the dollar to about 24.22 pounds in banks.

Abdel-Majid Mohi El-Din, head of Al-Ahly Exchange Company, told Masrawy that the company’s foreign exchange earnings doubled by 100% during the first transactions after the decision to liberalize the exchange rate, which motivated customers to sell the currency.

He added that although the proceeds of customers selling currency doubled after the exchange rate was liberalized, it is still less than the volume of transactions in normal conditions when exchange rates are stable, or during the first days of issuing high-return certificates in recent years.

Al-Ahly Exchange collected the equivalent of 164 million pounds during the last Sundays, Mondays and Tuesdays from the sale of foreign exchange clients.

Adel Fawzy, head of the Misr Exchange Company affiliated with Banque Misr, told Masrawy that the proceeds of customers selling dollars in the company’s branches doubled 5 times in the first 5 working days of the decision to liberalize the exchange rate last Thursday.

Fawzy explained that the company’s branches collected the equivalent of 146 million pounds in the first 5 working days of the decision to liberalize the exchange rate, including 68 million pounds and 80 million pounds on Sundays, Mondays and Tuesdays.

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