Investment banks in Egypt have announced that dollar prices are expected to stabilize against the pound in the fourth quarter of this year in the range of 16-17 pounds.
This happened after the recent decision of the central bank at the meeting of the Monetary Policy Committee, during which the decision was made to lower interest rates by 1%, and thus the interest rates after this decision were 14.25% on loans and 13.25% on deposit and decision about a reduction for the third time this year.
In a report published today by the investment bank, Beltone stressed that the dollar should not break free from limited fluctuations in the range of 16 and 17 pounds, which will help the central bank stay in the course of monetary easing and maintain the inflation target.
Istithmar Prime said in its report on the dollar forecast, saying that its price is expected to reach the end of this year to 16.70 pounds, adding that the reason for a slight decline is the gradual increase in domestic demand.
Beltone also stressed that the maximum dollar level in light of the pound growth is 16 pounds, and also expected demand for the dollar in the coming period by wholesalers and retailers, their trade may depend on imported goods from abroad.
With a steady increase in natural gas exports, it is expected that it will continue to support the local currency, which is why the trade balance will not feel pressure in 2019. On the other hand, Prime pointed to profits achieved by the pound, which according to central statistics about 8.9%, Addition this value is the maximum.
Data from the Central Bank of Egypt showed that dollar prices have gone through a period of decline, which began at the beginning of the year with 159 piasters, and lasted until reaching 8.9% for transactions last Thursday.
The rate of decline is about 3.5% of the total decline in interest rates since the beginning of this year, according to the meetings of the Central Bank's Monetary Policy Committee.