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بوابة الشروق
Sehr Al-Dimati: Wars drive dollar rate
Soheir El Damaty, the former Vice Chairman of Banque Misr and a banking expert, explains that the increase in the US dollar exchange rate against the Egyptian pound is primarily due to the implementation of a "flexible exchange rate" system, which is determined by supply and demand forces. She notes that the demand for the dollar has risen due to factors such as hard currency resources from exports, tourism, remittances from Egyptians abroad, and investments in treasury bills. She confirms that geopolitical issues and regional wars have impacted revenues from sectors like the Suez Canal and foreign investments, causing the dollar to rise. Currently, the exchange rate stands at around 51 Egyptian pounds, after being close to 55 pounds a month and a half ago. She also points out that the impact of price hikes on goods depends on the types of dollar-denominated materials and components used. The increase in prices is temporary and follows the raw material costs, which makes it impossible for factories to reduce prices immediately.
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