USD interbank transactions at Egyptian banks rose to $750mln on Wednesday

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The interbank transactions in US dollar rose significantly to a range between $650 to $750 million for the first time in months on Wednesday’s trading, a banking source told Middle East News Agency (MENA).

Banks received strong foreign currency inflows during Wednesday’s trading, worth more than $250 million from major international institutions which returned to invest in the Egyptian market after a long absence.

This confirms that the international business community have regained trust in the Egyptian economy and in its recent monetary policy measures, the source added.

The exchange rate market has witnessed a large movement during the past days of concessions on foreign currency by customers of local banks after the introduction of savings certificates with a return of 25% annually and 22.5% monthly, the source added.

The issuance of the certificates contributed to the increase the dollar supply and led to its decline at the end of Wednesday’s trading to less than EGP 30 after it had broken the level of EGP 32 at the beginning of the day, the source pointed out.

Arab exchange companies transferred good amount of dollar inflows to the currency exchange affiliated companies to Banque Misr and National Bank of Egypt (NBE).

The global depository receipts (GDR) of Egyptian companies have been repriced in the international stock market at the official rates of the dollar in banks, which enhances indirect foreign investment flows in Egyptian securities.

The dollar will witness a huge sell-off by foreign investors and local customers with confidence in the reform steps led by the Central Bank of Egypt (CBE) to correct market conditions, the source expected.