Following the Central Bank of Egypt's (CBE) recent decision to increase interest rates by 6%, exchange rates between Egyptian bank witnessed a remarkable change.

Dollar prices against the Egyptian pound exceeded EGP 50 in official markets for the first time in Egypt's history, as reported on Wednesday.

CIB

Buy rate 50.50

Sell rate 50.60

HSBC

Buy rate 50.50

Sell rate 50.60

National Bank of Egypt

Buy rate 50.30

Sell rate 50.40

Alex Bank

Buy rate 50.30

Sell rate 50.40

Banque Misr

Buy rate 50.00

Sell rate 50.10

Arab International Bank

Buy rate 50.00

Sell rate 50.10

Regarding the objectives of this decision, the Egyptian government seeks to curb inflation, achieve price stability and eliminate the unofficial market for foreign exchange.

In a special meeting, the Monetary Policy Committee (MPC) of the Central Bank of Egypt raised the overnight deposit rate, the overnight lending rate, and the rate of the main operation by 600 basis points to reach 27.25%, 28.25%, and 27.75%, respectively. Additionally, the discount rate has been raised by 600 basis points to 27.75%.

According to CBE report, the domestic economy is hindered by foreign exchange shortages, leading to a parallel exchange rate market and constraining economic growth.

Exchange rate movements, commodity price fluctuations, and supply shocks have driven persistent inflationary pressures, pushing headline inflation to record levels.