Optimism waves receded among economists on Monday, after the US dollar exchange rates rose against the Egyptian pound in banks, approaching LE18 again. Professor of Finance and Investment at Ain Shams University Khaled Abdel Fattah says the exchange rate of the US dollar is rising because of disorder in supply and demand, which occured after halting the imports of non-basic commodities. Meanwhile, the US dollar continued its rise unabaited against the Egyptian pound in the banks for the second consecutive day on Monday, being sold at LE18.05 at peak rate. It devalued the currency by about a third from the former peg of 8.8 against the dollar and allowed it to drift lower. These factors combined to increase the exchange rate of the US currency locally, until it finally reached LE18 to the dollar, before the pound floatation decision was announced by the Egyptian government earlier in November 2016.

Source: Egypt Independent November 22, 2016 08:58 UTC