By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    Cooperation between MSMEDA, JICA to boost competitiveness of MSMEs
    Cooperation between MSMEDA, JICA to boost competitiveness of MSMEs
    March 21, 2023
    SCZONE discusses cooperation with American-Hellenic Chamber of Commerce
    SCZONE discusses cooperation with American-Hellenic Chamber of Commerce
    March 21, 2023
    EFG Hermes concludes valU’s 4th issuance in a securitized bond worth EGP 856.5m
    EFG Hermes concludes valU’s 4th issuance in a securitized bond worth EGP 856.5m
    March 21, 2023
    Prime Minister meets officials of German Bosch Group
    Prime Minister meets officials of German Bosch Group
    March 21, 2023
    CBE allows women to open savings vessels to their minor children, should mothers provide money as donation
    CBE allows women to open savings vessels to their minor children, should mothers provide money as donation
    March 21, 2023
  • Politics
    PoliticsShow More
    Egypt, Turkey are not competitors in Libya: FM Cavusoglu 
    Egypt, Turkey are not competitors in Libya: FM Cavusoglu 
    March 21, 2023
    Chinese President Xi Jinping said on Tuesday that China is ready to expand cooperation with Russia during his meeting with Russian Prime Minister Mikhail Mishustin.
    Xi says China to expand cooperation with Russia in trade, investment, supply chain, mega projects, energy, hi-tech
    March 21, 2023
    Egypt’s Irrigation Minister heads to New York for UN water meeting 
    Egypt’s Irrigation Minister heads to New York for UN water meeting 
    March 21, 2023
    Al-Sisi pardons all imprisoned debt defaulters ahead of Ramadan 
    Al-Sisi pardons all imprisoned debt defaulters ahead of Ramadan 
    March 21, 2023
    Xi says China will continue to play constructive role in promoting political settlement of Ukraine crisis
    Xi says China will continue to play constructive role in promoting political settlement of Ukraine crisis
    March 21, 2023
  • Interviews
    InterviewsShow More
    Government should help Egyptian arts revive its pioneering role: Omar Abdel Aziz
    Government should help Egyptian arts revive its pioneering role: Omar Abdel Aziz
    March 15, 2023
    Interconnected healthcare systems in Africa require political will from North African leaders: Amref official
    Interconnected healthcare systems in Africa require political will from North African leaders: Amref official
    March 12, 2023
    EGX ready for government’s IPOs programme: Chairperson
    EGX ready for government’s IPOs programme: Chairperson
    February 15, 2023
    British International Investment invests $4.5bn in 700 businesses across Africa: Sherine Shohdy
    February 15, 2023
    Valeo has invested around €0.5bn in Egypt over the past 10 years: CEO
    Valeo has invested around €0.5bn in Egypt over the past 10 years: CEO
    December 27, 2022
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: CBE to discuss interest rates, local currency exchange on Thursday
Share
Notification
Latest News
Quantum mechanics- how the future might influence the past
Quantum mechanics: how the future might influence the past
Science
Egypt, Turkey are not competitors in Libya: FM Cavusoglu 
Egypt, Turkey are not competitors in Libya: FM Cavusoglu 
Politics Region
Cooperation between MSMEDA, JICA to boost competitiveness of MSMEs
Cooperation between MSMEDA, JICA to boost competitiveness of MSMEs
Business
SCZONE discusses cooperation with American-Hellenic Chamber of Commerce
SCZONE discusses cooperation with American-Hellenic Chamber of Commerce
Business
EFG Hermes concludes valU’s 4th issuance in a securitized bond worth EGP 856.5m
EFG Hermes concludes valU’s 4th issuance in a securitized bond worth EGP 856.5m
Business
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > CBE to discuss interest rates, local currency exchange on Thursday
Business

CBE to discuss interest rates, local currency exchange on Thursday

Hossam Mounir
Last updated: 2022/09/21 at 10:58 PM
By Hossam Mounir 6 Min Read
Share
CBE to discuss interest rates, local currency exchange on Thursday
SHARE

The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) will hold its periodic meeting on Thursday to discuss the fate of the bas interest rates, which are the main indicator of the direction of interest rates on the EGP in the short term.

The committee had decided in its last meeting, which was held on 18 August, to maintain rates at 11.25% for deposit, 12.25% for lending, and 11.75% for the credit and discount rates and the main transaction, after raising those prices by 3% over March and May.

The committee stressed that this decision is in line with the goal of price stability in the medium term, expecting a relatively higher rate of inflation than the CBE’s target of 7% (±2%) on average during the fourth quarter of 2022, provided that inflation rates gradually decline.

The CBE has recently revealed that the core consumer price index recorded a monthly rate of 0.6% in August 2022, compared to -0.3% in August 2021, and 1.5% in July 2022. The annual rate of core inflation increased by 16.7% in August 2022, compared to 15.6% in July 2022.

On Wednesday, the US Federal Reserve raised its benchmark interest rate by 0.75% for the third time in a row and signalled its intention to continued tightening monetary policy going forward in a bid to control inflation.

The average price of the dollar against the Egyptian pound also increased, at the end of the transactions of banks operating in the Egyptian market, on Wednesday, by about EGP 0.5 to EGP 19.4419 for buying and EGP 19.5183 for selling, compared to EGP 19.3928 for buying and EGP 19.4683 for selling on Tuesday, according to the CBE.

The official price of the US currency at the CBE also increased to EGP 19.43 for buying and EGP 19.5384 for selling, compared to EGP 19.3806 for buying and EGP 19.4884 for selling.

This level of the dollar price against the pound is the highest ever. The dollar witnessed its highest price in banks operating in the Egyptian market in December 2016, when it reached EGP 19.1343 for buying and EGP 19.5186 for selling.

The US dollar exchange rate increased by EGP 0.5 at banks on Wednesday. It ranged between EGP 19.42 and EGP 19.49 for buying and EGP 19.50 and EGP 19.52 for selling.

At the National Bank of Egypt (NBE) and Banque Misr, the dollar exchange rate recorded EGP 19.44 for buying and EGP 19.50 for selling. At the CIB, it reached EGP 19.46 for buying and EGP 19.52 for selling.

At the Suez Canal Bank, the USD recorded EGP 19.42 for buying and EGP 19.52 for selling, and at the Arab African International Bank (AAIB) it recorded EGP 19.44 for buying, and EGP 19.52 for selling.

The price of the dollar increased by about EGP 0.11 against the Egyptian pound in last week’s trading, then stabilized last Sunday and Monday, before increasing again on Tuesday by EGP 0.2.

Tarek Metwally, former Vice President of BLOM Bank Egypt, said that it is highly likely that the MPC would increase the interest rates.

Radwa El-Swaify, head of the research sector at Pharos Holding, expects the CBE to maintain the interest rates during the MPC meeting on Thursday.

She expects this to happen given the CBE’s keenness on avoiding adding more pressure to the state’s general budget with the relative calm in global commodity prices and inflation. A decline is likely to take place in early April 2023, and therefore, fixing interest rates comes with the aim of supporting production and the state’s general budget.

El-Swaify noted that raising the interest rate is not unlikely, however, especially if quick steps were taken regarding the flexibility of exchange rates before the meeting.

For its part, Zilla Capital Investment expected the CBE to fix interest rates during the MPC meeting.

The company explained that the nature of the Egyptian economy makes the impact of raising interest rates in calming inflation very limited, as it will not attract foreign investors to buy EGP, and will not support the cash reserve.

The Research Department of HC Securities and Investment expected the CBE to raise the interest rate by 100 basis points at its meeting on Thursday.

“We believe the MPC may prefer to gradually raise the overnight deposit and lending rates by 100 basis points at tomorrow’s meeting, and then raise them again by another 100 basis points in the next meeting,” said Heba Mounir, the company’s macroeconomic analyst.

You Might Also Like

Cooperation between MSMEDA, JICA to boost competitiveness of MSMEs

SCZONE discusses cooperation with American-Hellenic Chamber of Commerce

EFG Hermes concludes valU’s 4th issuance in a securitized bond worth EGP 856.5m

Prime Minister meets officials of German Bosch Group

CBE allows women to open savings vessels to their minor children, should mothers provide money as donation

TAGGED: CBE, currency
Share this Article
Facebook Twitter Email Print
Previous Article Egypt to lead UN efforts in eliminating Hepatitis C: Health Minister  Egypt to lead UN efforts in eliminating Hepatitis C: Health Minister 
Next Article Egypt’s Irrigation Minister reviews efforts to adapt to negative effects of climate change  Egypt’s Irrigation Minister reviews efforts to adapt to negative effects of climate change 
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

Quantum mechanics- how the future might influence the past
Quantum mechanics: how the future might influence the past
Science
Egypt, Turkey are not competitors in Libya: FM Cavusoglu 
Egypt, Turkey are not competitors in Libya: FM Cavusoglu 
Politics Region
Cooperation between MSMEDA, JICA to boost competitiveness of MSMEs
Cooperation between MSMEDA, JICA to boost competitiveness of MSMEs
Business
SCZONE discusses cooperation with American-Hellenic Chamber of Commerce
SCZONE discusses cooperation with American-Hellenic Chamber of Commerce
Business
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?