Egyptian government bond prices jumped and non-deliverable Egyptian pound futures rose 5.5-7% to 29.4-32.4 per dollar on Wednesday after the central bank devalued the currency for the third time in less than a year.
Egypt’s central bank allowed the pound to fall to 26.49 per dollar earlier today from about 24.70 per dollar.
Exchange rate flexibility was a key requirement of the International Monetary Fund, which approved a $3 billion 46-month bailout package in October, according to Reuters.
Less than a year ago, the Egyptian pound traded in a tight range below 16 pounds to the dollar.
Egyptian dollar-denominated government bond prices rise to two-year high after devaluation
The price of the dollar in Egypt rose to an unprecedented level in the official market today, Wednesday, after the Central Bank raised its price to 26.49 per pound for sale and to 26.36 pounds for sale.
And at National and Misr Banks, Egypt’s largest state-owned banks, the dollar was worth £26.25 when buying and £26.3 when selling.
Exchange rate flexibility was a key requirement of the International Monetary Fund, which approved a $3 billion 46-month aid package for Egypt in October.
The dollar recorded the highest price on the official market, at the Arab Investment Bank, of £26.51 buy and £26.55 buy, while it recorded £26.3 buy and £26.4 buy, one pound for sale in a commercial international bank. Egypt, the largest private bank.
The dollar recorded its biggest daily move since the central bank allowed it to fall 14.5% on October 27, according to the announced data.
Prior to that, it traded at 24.70 pounds per dollar.