MEMPHIS REISEN

Three Egyptian exchange companies garner EGP 6.479bn post local currency liberalisation – Dailynewsegypt

Since the liberalization of the exchange rate on 6 March up to the present, three exchange companies linked with government banks have gathered a total of EGP 6.479bn in foreign currencies.

Abdel Medied Mohy El-Din, the chairperson of Al Ahly Exchange, reported that his firm has drawn an amount equivalent to EGP 3.584bn during this timeframe, noting a steady rise in revenue.

He added that on Monday, the revenue reached EGP 240m, with 65% of the total being in US dollars, followed by the Saudi riyal, the UAE dirham, and the euro.

He highlighted the considerable public interest in converting foreign and Arab currencies into Egyptian pounds at favourable rates, contributing to the stabilization of the exchange market and the eradication of the black market.

Adel Fawzi, the chief of Misr Exchange, revealed that the firm’s earnings from foreign and Arab currencies were about EGP 2.6bn, with operations spanning 71 branches countrywide.

Fawzi specified that the US dollar represented the majority of the revenue at 62%, trailed by the euro at 17%, the Saudi riyal at 15%, the British pound at 1.4%, the UAE dirham at 1%, and other currencies comprising 1.5%.

Mohamed Ragaei, the chairperson of Cairo Exchange, indicated that the firm’s income from foreign and Arab currencies was roughly EGP 295m, facilitated by 12 branches throughout the nation.

During a special meeting on 6 March, the Central Bank of Egypt resolved to let the exchange rate be set by market forces, emphasizing the need to consolidate the exchange rate to prevent the buildup of foreign currency demand after bridging the gap between the official and black market rates.

Hassan Abdullah, the Governor of the Central Bank, asserted in a press briefing post-decision that the bank does not aim for a particular dollar exchange rate, leaving it entirely to market dynamics.

He observed that the Central Bank would only intervene in the exchange market in cases of unusual volatility. Since this policy change, banks and exchange companies in Egypt have seen substantial inflows of dollars and other major foreign currencies.