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The collapse of the dollar against the pound did not benefit the Egyptian economy - by yehia
The rise in the price of the pound against the U.S. dollar trading over the past two months to raise many question marks in the Egyptian economic circles, and more question marks statements, Dr. Youssef Boutros Ghali, Minister of Finance on expectations the dollar down against the pound and 5.30 pounds to reach the end of this year, and increased confusion Ghali retreat from his statement controversial.
The pound rose by 2.8% against the dollar recently, the decline accelerated last very significantly over the past two months, but exports will not be affected because the pound had risen against the euro or the pound sterling since the European countries is considered the largest trading partner of Egypt, the main source of tourists.
At the top reasons for the high rate of the pound against the dollar reduced the U.S. Federal Reserve interest rate by half a percentage point last September, rising interest rates in Egypt and prosperity of the tourism sector and the high price of oil and gas.
The dollar had not fallen before the Egyptian pound only, as also declined against the euro and the pound sterling and Japanese yen, while similar to the collapse of world famous American currency, prompting foreigners residing in Egypt to sell the dollar and buying the pound, which escalates dramatically.
It also increased the collapse of the dollar against the pound, the report showed a surprise drop in U.S. orders of durable goods manufacturing, as the euro rose initially against the U.S. dollar to 1.4310 dollars immediately after the issuance of 1.4305 before the report was issued. The dollar fell against the yen to 114.10 yen from 114.20 yen before the report was issued.
The decline in the dollar rushed to the Central Bank of Egypt for the purchase of huge quantities of it after it reached its price to 5.50 pounds in early dealings among banks on Thursday, October 25, in order to halt the rise in the pound against the dollar so as not to be affected by Egyptian exports abroad, which are in dollars, sources with the bank That foreigners rushed to buy the pound after the recent statements made by Minister for Finance, which expected to arrive during which the dollar against the pound to 5.30 pounds end of this year, central bank intervention immediately returned the American currency to rise slightly.
The central bank bought about $ 500 million, after-Ghali's statements of the magazine "cameraman" weekly that he expected the dollar to decline over 4% against the pound by the end of this year, to stabilize the price at about 530 pounds, but the Finance Minister, retreated from his statement, said the newspaper "World Today "that it had" no evidence of any statements related decline of the dollar or decline because American currency is moving according to the mechanisms of supply and demand.
The data showed room circulation of currency among banks administered by the Central Bank very high levels of the magnitude of the circulation of the dollar against the pound reached in total 1,176 billion dollars on Thursday, Oct. 25, compared with 132 million on Wednesday.
Rise in the pound against the dollar may be an indication of the revival of the Egyptian economy, but the decline in American currency universally confirmed beyond any doubt that the recovery of the pound is not in favour of the Egyptian economy as evidenced rush central bank to buy large quantities of it even rises again and drop the pound and the return of origin so as not to Prices are affected exports.