CAIRO: The price of the US dollar rose against the Egyptian pound in recent days, with one dollar worth 49.25 Egyptian pounds.
Egyptian economic experts attributed the increase to recent regional developments.
“The biggest factor affecting the price of the dollar against the pound is remittances from Egyptians abroad,” said Dr Alaa Ali, an economic expert.
“If it rises, the price of the dollar will stabilize or fall against the pound, and if it falls, the price of the dollar will rise and thus the price of the pound will fall,” the economist told Arab News.
“Remittances from Egyptians abroad have been high since the Egyptian government's decision to liberalize the exchange rate about eight months ago, which has helped to stabilize the dollar price at about 48 pounds.
“However, with the recent tensions, remittances from Egyptians in foreign currency have decreased and thus the price of the dollar against the pound has increased by about one pound,” Ali said.
“Egyptians' sources of tourism, investment, exports and remittances are high in dollar earnings.”
Ali said he hoped the price would stabilize again with Egypt getting the third tranche of its International Monetary Fund loan, which has topped about $800 million.
Mohamed Shawqy, a professor of economic risk management, also commented on the reasons behind the recent increase in the price of the dollar against the Egyptian pound.
Shawqy referred to regional tensions and the threat of an Iranian military response against Israel following the assassination of Hamas leader Ismail Haniyeh in Tehran.
He pointed out to Arab News: “The more tense the situation in the region, the more negatively the economic situation is affected.”
The Head of the Importers Division at the Chambers of Commerce, Matta Beshai, said: “The past period has seen a kind of reserve among importers about the dollar, fearing regional events and instability in the region.”
These developments “have led many to cut back on dollar spending and work to reduce costs in every possible way, fearing an explosion of the regional situation in light of Iranian threats to retaliate against Israel.”
He added: “Banks are operating normally and dollars are being paid to importers as normal after the Ras Al-Hekma deal, which helped large financial flows in a historic investment deal that reached $35 billion.”
Beshai said that “the main reason for the increase in the price of the dollar in banks is the tension in the regional situation, which has led to clear fears among investors.”
At the same time, he emphasized that the state is “working normally and dealing with the crisis effectively.”
