collected by :Irax John
Banks’ deposits and loans witnessed severe fluctuations following the Central Bank of Egypt’s (CBE) decision to float the local exchange rate on 3 November 2016.
This impact is not limited to deposits and loans, but also affects all banking indicators, especially those in dollars.
The following months witnessed extreme increases and declines in the value of deposits and loans in foreign exchange.
The same case happened to banks’ loan portfolios in foreign currency.
The growth rate of deposits in local currency was only 25.5%, while the deposits in foreign currency recorded a growth of 114.6%, and this rate falls to only 5.4% after excluding the impact of the flotation.
America dollar maintains price in Egyptian banks
The US exchange rate against the Egyptian pound maintained its rates within bank dealings on Sunday.
According to the most recent price updates, the US dollar price was recorded at LE17.75 for purchase and LE17.85 for sale in the National Bank of Egypt (NBE).
In Banque du Caire, the price recorded LE17.70 for purchase and LE17.80 for sale.
In Abu Dhabi Islamic Bank (ADIB) the dollar stood at LE17.75 for purchase and LE17.85 for sale.
Banque Misr recorded LE17.78 for purchase and LE17.88 for sale, and LE17.73 and LE83 in the National Bank of Greece.
In a statement Sunday, the Minister of Finance Amr al-Garhi said the Ministry will decline the custom US dollar price to LE16.25, starting from August 1 until August 31.
“The custom US dollar price has not changed since it was fixed at LE16.50 four months ago,” Garhi pointed out, explaining that the decline comes in line with the decreasing prices of the US exchange rate against the Egyptian pound over the last period.
Garhi added that today the Customs Authority will send a list that includes the new exchange rate to the Egyptian custom ports and outlets to put it into effect.
Youssef Farouk, deputy CEO of al-Ahli Exchange Company, owned by the National Bank of Egypt (NBE), expects the US dollar exchange rates will stand at an average of LE17, excluding a sharp drop to US dollar prices over the next months.
The decreasing demand of the US dollar, as well as offers of Egyptian Pound saving schemes with attractive rates, led to the drop of the US dollar exchange rates by 30 piasters, Farouk told al-Masry al-Youm.