The average price of the dollar today continued to be stable in Egypt, Monday, March 21, 2022, in the transactions of the Central Bank and government and private banks.
The price of the dollar today in Egypt
A recent report suggested that there would be a need for a significant devaluation of the Egyptian pound, indicating that the Egyptian government might need more assistance from the International Monetary Fund if financial market pressures continued to increase.
Analysts at the investment bank “JP Morgan” expected that the public finances of Egypt, which is already under pressure, would suffer further damage in light of the rise in commodity and food prices and a possible decline in the number of Russian tourists.
“We expect that there will probably be a need now to reduce the exchange rate,” he added, estimating that the Egyptian pound is currently overvalued by more than 15%.
Bankers said that investors are reducing their positions in Egypt since the invasion that began on February 24, reflecting fears of a large current account and budget deficit in Egypt, as well as exposure to the risks of a possible Federal Reserve (the US central bank) raising interest rates. They say investors fear the value of their holdings will diminish if Egypt is forced to devalue its currency.
Because of the war in Ukraine, Egypt faces higher costs due to its dire need to import wheat, in addition to losing revenue from tourism from Russian and Ukrainian visitors to the Red Sea resorts.
This scenario analysis resulted in a potential downward trend of 8.5% from the current price against the US dollar. He added that his target price is to drop the currency to 17.25 pounds to the dollar.
A recent report suggested that there would be a need for a significant devaluatioThe US bank put forward several scenarios, the first is not to devalue the currency, and a similar scenario for the period 2014-2015 when the authorities allowed the currency to depreciate about 5%, and the third is a larger devaluation under a new program with the IMF.
Updated on: 3/22/2022 The price of the dollar against the Egyptian pound reached: 18.5 EGP