Hot money exits put pressure on the Egyptian pound...more than half a billion dollars in a day

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Arab and foreign transactions in the secondary market for Egyptian government debt recorded a net sale of $505 million during Monday’s trading, with foreigners accounting for 99.9% of sales, according to Egyptian Stock Exchange data.

Hot money returned to exit Egypt after positive flows during the past two weeks, as Arab and foreign transactions in the secondary market for government debt recorded a net purchase of $328.5 million during the past week, and a net purchase of $1.2 billion during the week before last.

During last September, transactions by Arabs and foreigners recorded net purchases of $702 million, as Arabs recorded net purchases of $1.528 billion, while foreigners recorded net sales of $826.5 million.

The price of the dollar rose in Egypt against the pound during trading today, Monday, with the US currency continuing the series of gains it recorded over several trading sessions, exceeding the 54-pound barrier in a number of Egyptian banks, for the first time since April.

According to statistics prepared by Al Arabiya Business, the highest exchange rate for the US dollar in Abu Dhabi Islamic, Alexandria, and HSBC banks was 53.92 pounds for purchase, compared to 54.02 pounds for sale.

While the lowest exchange rate for the US dollar at Qatar National Bank was 53.05 pounds for purchase, compared to 53.15 pounds for sale.

In the National Bank of Egypt, Egypt Bank, the Arab Bank, the Egyptian Gulf Bank, the Industrial Development Bank, the Kuwait National Bank, the Arab African Bank, and the “CIB” banks, the price of the dollar reached 53.89 pounds for purchase, compared to 53.99 pounds for sale.

At the Central Bank of Egypt, the exchange rate of the US dollar recorded 53.88 pounds for purchase, compared to 54.02 pounds for sale.