US dollar exchange rate rises by 40 piasters, reaching LE 55.75

The US dollar exchange rate against the Egyptian pound rose by 40 piasters across several banks during Sunday’s trading, compared to the rates at the start of the day. According to data published on bank websites, the dollar reached LE55.65 for buying and LE55.75 for selling. At the National Bank of Egypt, Banque Misr, Banque du Caire, Commercial International Bank (CIB), and Bank of Alexandria, the dollar was quoted at LE 55.65 for buying and LE 55.75 for selling—an increase of 40 piasters on both the buying and selling rates compared to the levels seen at the beginning of the day’s trading. This latest increase in the dollar exchange rate occurred amidst broader fluctuations in exchange rates throughout the day, with the selling price surpassing the LE 55.70 mark to reach LE 55.75. The Non-Executive Chairman of Midbank, Ashraf al-Kady, said that a rise in the exchange rate typically leads to higher import costs, which may exert inflationary pressure on the prices of certain goods and services. Conversely, it could enhance the competitiveness of Egyptian exports and increase the value—in Egyptian pounds—of remittances sent by Egyptians working abroad, he said. Interplay of various factors at work Banking expert Mohamed Abdel-Aal explained that the successive increases in the dollar exchange rate reflect the interplay of various external and domestic factors—foremost among them being escalating geopolitical risks, global movements of the US dollar, and shifts in the demand for foreign currency within the Egyptian market. Abdel-Aal added that current exchange rate movements do not necessarily indicate a mass exodus of foreign investment or a crisis in the availability of hard currency. Assessing the state of the foreign exchange market requires looking at the volume of inflows and outflows, net foreign investment in debt instruments, trends in foreign currency reserves, and sources of foreign exchange—rather than focusing solely on daily fluctuations in the dollar exchange rate, Abdel-Aal explained. He added that domestic pressures are also linked to import requirements—particularly for energy, strategic goods, and intermediate products—as well as external obligations and costs related to shipping and insurance. Edited translation from Al-Masry Al-Youm