How far has the pound recovered? At the close of trading on Thursday, 29 October, at about 15:00 Cairo time, the Central Bank of Egypt quoted the dollar at EGP 55.98 to buy and 56.12 to sell, while the National Bank of Egypt showed 55.99 and 56.09. That was eight piastres below the opening level and took the buying rate back under 56 for the first time in three days. On Wednesday the central bank rate had stood near 56.05 and 56.19.
Where was the record? On Monday, 26 October, the dollar broke through 56 pounds for the first time, reaching 56.25 to sell at the National Bank of Egypt. It had been close to 53 in mid-October, and a report by Arab Window put the pound's loss since the start of the month at about 6.4% by 23 October.
Why did the currency weaken? Bankers point to a partial exit by foreign investors from treasury bills. Banking expert Mohamed Badra adds costlier oil, which raises the fuel import bill, and the pull of US bonds as American rates climb. Central Bank Governor Hassan Abdallah has described a flexible exchange rate as the first line of defence against outside shocks.
