CBE Likely To Intervene As Dollar Sets New Record Against Egyptian Pound

The U.S. Dollar is trading on Thursday at the highest levels against the Egyptian Pound in 9 years. The Egyptian currency fell to a new low of EGP 6.19 against the U.S. Dollar, 4 piasters lower within the current week.

The new fall is contributed to the fact that the banks which finance the forex brokers did not provide the latter with the U.S. currency amid growing expectations of witnessing an intervention from the Central Banks of Egypt. The CBE is expected to intervene to control the Pound’s price against the dollar, despite the country’s sharp drop in foreign cash reserves and the delay of IMF’s $4.8 billion loan.

Belal Khalil, Deputy Chairman of the Foreign Exchange Division of the Federation of the Chamber of Commerce, said the U.S. dollar’s price has witnessed stable at 6.19 against the Egyptian pound as the forex brokers’ problem incurred on Wednesday started to be handled.

Khalil further noted that dollar’s new rise was due to the fact that the forex brokers incurred a deficit in the U.S. currency.

“Supply is weak because people are hesitant to sell until they see what will happen in the market,” Khalil added.

Moreover, the Deputy Chairman of the Foreign Exchange Division forecasted that the coming days will be witnessing the CBE’s intervention to defend the national currency through injecting dollar cash liquidity to curb the dollarisation transactions as Egyptians are either doing it for bargain-hunting, to protect their funds in safer vessels.