Is the recent increase in the dollar temporary, or will it continue to rise? What will make the dollar increase or decrease, and what will be the fate of the exchange market in the coming days? Stay with us until the end and you will know the details in this report.
We saw from the middle of last week until today, Sunday, that the price of the dollar was on the rise, breaking the fifty-pound barrier in Sunday’s trading, and recording 50.27 pounds for sale at Abu Dhabi Islamic Bank, raising many questions about the fate of dollar prices in the coming period and the reasons for the increase in the prices of the American currency..
First, we must know that what is happening in the exchange market is saying that the Central Bank of Egypt is committed to the policy of the free rate or the flexible rate since last March, after the floatation decision. This means that prices move based on supply and demand for the dollar and without any intervention, and this is a certificate of confidence from the Central Bank. For foreign and Arab investors and international institutions, there is no interference in the price, and this will of course achieve great gains in the investment sector, which will increase significantly in the coming period because the decline in the price of the local currency is one of the most important factors attracting foreign investments to the Egyptian market, and this is because Investors’ gains will increase and the Egyptian market will be ideal for investment.
Ok, will the price of the dollar continue to rise?
This is a question that no one can answer except the movement of the exchange market itself, because the price is free, but the most important point in the whole issue is the availability of the dollar in the banks, and this is the most important thing, as the banker Hisham Ezz Al-Arab said in an interview before, and he stressed that as long as the dollar is available, there is no fear of a rise in dollar prices because The dollar has increased against all world currencies since Trump’s victory, and the reason is the strength of the dollar. He also said that the price of the dollar should not be a scarecrow or an indicator of the government’s negative performance, because this happens in all currencies in the world.
The price of the dollar can fall at any time if the demand for it decreases, and in the end, the matter depends on the flow of the American currency in the exchange market, and if we look at all the indicators, the situation is very reassuring because there are large dollar flows from the state’s dollar sectors, such as remittances from Egyptians abroad, which have returned to achieving record numbers again, as well as the flows. From investment deals, the localization of industry, the fields of energy, export, tourism, and rationalization of imports, all of this helps in saving the dollar, and we also do not want to forget that Egypt It paid off the largest amount of foreign debt in its history this year, amounting to $36 billion, and the upcoming payments will be less than that. This will help ease the pressure on the dollar, unlike plans to transfer some debts to investments in the Egyptian market, as happened with the UAE’s debts.
In conclusion, the rise in the price of the dollar is definitely temporary, and with a decrease in demand for it, it will return to its normal levels with the increase in dollar flows from all the sectors we mentioned. This means that there is no fear of an increase in the price of the American currency as long as there are significant dollar flows entering the country and the government is not silent and is working on all directions of increasing industrialization. And reduce imports to the maximum degree, especially since imports and debt are the two sectors that drain the dollar the most in Egypt, and we saw the amount of effort being made in the sector of localization of industry, opening new factories, operating stalled factories, and attracting International companies to invest in the manufacturing sector in Egypt.
