Egyptian Pound: a Significant Appreciation
Sudan Events – Sumaya Sayed
The Egyptian pound experienced a significant appreciation, surging by 39 percent against the US dollar in just a few days amidst a backdrop of uncertainty in the black market. This dramatic rise brought the exchange rate of the US currency down from 75 to 55 Egyptian pounds.
This notable increase occurred as Egypt reached a pivotal agreement with the International Monetary Fund (IMF) to enhance its existing program from $3 billion to over $10 billion. This expansion is in collaboration with international partners, including the International Finance Corporation and the European Union, marking a significant step in bolstering Egypt’s economic stability and growth prospects.
In the financial markets, the non-deliverable futures (NDF) contracts for the Egyptian pound witnessed an 8 percent decline on Monday, settling at 56.75 pounds to the dollar for 12-month contracts, as reported by Bloomberg. This movement in the futures market reflects investors’ expectations and speculations about the currency’s future trajectory.
The gold market also saw a downturn, with prices dropping to 3,520 Egyptian pounds ($113.5 official rate, $64 black market) per gram for 21-carat gold, marking the lowest level in three weeks. This decline was highlighted by data from Al Arabiya Business, indicating a temporary easing in the precious metal’s value amidst the broader economic developments.
