CAIRO: The US dollar has risen against the Egyptian pound in recent days, with one dollar worth 49.25 Egyptian pounds.
Egyptian economic experts pointed to the recent increase in the development of the region.
“The main factor affecting the price of the dollar to the pound is the sending of Egyptians abroad,” said Dr. Alaa Ali, an economic expert.
“If it rises, the price of the dollar will stabilize or decrease against the pound, and if it decreases, the price of the dollar will rise, and therefore the price of the pound will decrease,” the economist told the Arab News.
“Egyptian remittances have increased significantly since the Egyptian government's decision to liberalize the exchange rate about eight months ago, which helped to stabilize the exchange rate. dollars about 48 kilos.
“However, with the recent conflict, remittances from Egyptians in foreign currency have decreased, and therefore the price of the dollar against the pound has increased by about one pound,” Ali said. .
“Egyptian sources of tourism, investment, exports, and financing have a significant value in terms of revenue.”
Ali said he expected the price to stabilize with Egypt receiving the third part of the international loan, which is more than $800 million.
Mohamed Shawqy, a professor of economic risk management, commented on the reasons for the recent increase in the value of the dollar against the Egyptian pound.
Shawqy spoke about regional tensions and the threat of an Iranian military response to Israel following the assassination of Hamas leader Ismail Haniyeh in Tehran.
He emphasized in Arab News: “The more difficult the situation in the region, the negative impact on the economy.”
The head of the Importers Division of the Chambers of Commerce, Matta Beshai, said: “The past period has witnessed a kind of reservation among importers regarding the dollar, fearing regional movements and the instability in the region.”
These developments “encouraged many to reduce dollar spending and to work to reduce spending in every possible way, fearing an explosion of the regional situation in the face of the Iranian threat to retaliate against Israel .”
He added: “Banks are working normally, and dollars are being issued to importers legally after the Ras Al-Hekma agreement, which has helped to generate a large flow of money in the investment agreement. a historic loan 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 led to a clear fear among investors.”
At the same time, he stressed that the state “is working normally and dealing with the crisis effectively.”
