At banks on Wednesday, the US dollar changed hands at EGP 17-17.5 for buying and EGP 17.4-18.25 for selling—the same rate as Tuesday. He assured that the variations in exchange rates among banks and its movement is normal. “The new exchange rate policy needs an appropriate period to pass through the transition phase and ensure the effectiveness of the market,” he explained. “This will not be realised before establishing an attractive exchange rate and a high return on investment in the national currency,” he explained. “This is why the rate is likely to remain around EGP 16 for about three months.”He added that this will then be followed by inflow of direct investments, which would raise Egypt’s credit rating and increase its foreign exchange reserves—eventually leading the exchange rate lower to EGP 14.

Source: Daily News Egypt November 23, 2016 15:33 UTC