Foreign currency prices in Egypt, led by the dollar, rose significantly at the end of trading on Wednesday, as the American currency headed again towards 50 pounds in conjunction with the disclosure of important economic data.
Higher debt service payments
The report on the external situation of the Egyptian economy revealed a significant increase in debt service payments (installments and interest) by 29.5% during the fiscal year ending in June 2024, as the fiscal year in Egypt begins on the first of July and ends at the end of June of the following year.
According to the report issued by the Central Bank yesterday, Egypt repaid about $32.9 billion in loan installments and debt interest during the fiscal year 2023-2024, compared to about $25.4 billion in the fiscal year 2022-2023.
The report explained that the increase in the cost of debt to Egypt over the past year is due to an increase in principal payments by about $5.2 billion, in addition to an increase in interest payments by about $2.3 billion.
External debt
Regarding external debt, the report showed a decline in Egypt’s external debt by $15.149 billion, or 9.9%, during the first half of the current year (from January to June), recording the largest decline in the history of external debt.
According to data from the Central Bank of Egypt, the total external debt decreased to about $152.885 billion at the end of last June, compared to about $168.034 billion at the end of last December.
These data come after a series of economic reforms carried out by Egypt last March, in addition to the signing of the largest investment deal worth $35 billion to develop the city of Ras El Hekma.
The unification of the exchange rate, which was implemented last March, contributed significantly to increasing dollar flows through official channels, which led to the disappearance of the parallel market for foreign currency exchange.
The country has witnessed an adjustment in the exchange rate several times, most recently in March 2024, when it was agreed with the Fund to increase the loan to $8 billion, which led to relative stability in the exchange rate at levels close to 50 pounds to the dollar recently.
The dollar today against the Egyptian pound
The highest official price of the dollar was recorded today in Egypt at Abu Dhabi Islamic Bank, where it reached the level of 49.81 pounds for purchase and 49.90 pounds for sale.
In other banks, such as the National Bank of Egypt, the largest government bank in Egypt, the price of the dollar reached 49.76 pounds for purchase, and the selling price at 49.86 pounds.
As for the largest private sector bank in Egypt, the Commercial International Bank (CIB), the price of the dollar recorded 49.77 pounds for purchase, and the selling price at 49.87 pounds.
