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The American “Bloomberg” network highlighted the jump that the pound recorded recently, which included it in the list of the best performing currencies in the world during the past year, noting that there are expectations that the pound will record a further increase in its value against the dollar, by the end of this year, bringing the price of The dollar is 15.35 pounds.
And the “Bloomberg” said that the pound, which underwent a float at the end of 2016, in a move that was driven by a dollar liquidity crisis, has become a favor among traders of the differences between interest rates, a trading system that is based on borrowing in a currency with low interest rates and using it to buy a high-interest currency, then buy A financial instrument that makes a profit after combining interest rate differentials.
And expected to see interest rates, which the central bank cut rates by 350 basis points, to 12.25% last August, further cut, to record 11.5% tomorrow. And attributed a statement to the Central Bank, the day before yesterday, the decline of the dollar to the marked increase in banks’ resources of foreign exchange, especially from foreign exchange funds investments in financial markets.
The statement said that the total foreign exchange flows of banks recorded about one billion and 7 million dollars, since last Wednesday until the day before yesterday, and the dollar exchange rate lost about 14 piasters during that period..
The price of the dollar fell on the exchange market yesterday, to reach the National Bank of Egypt, after the close of transactions to 15.85 pounds for purchase, and 15.95 pounds for sale. And Societe Generale Bank expected that the pound would record a new rise against the dollar, which may reach 3.7%, so that the price of buying the dollar against the pound would be 15.35 pounds by the end of this year. The investment bank «Hermes» believes that the increase in tourism revenues, in return for the shrinking of the current account deficit, are two factors that will contribute to increasing the advantage of the pound.
Alan Sandeep, director of the research unit at “Naeem Financial Brokerage” in Cairo, said that the main factor that will determine the future of the pound’s strength is Egypt’s foreign debt obligations..