By: Fahd Omran

Cairo - Mubasher: The Egyptian pound saw its highest daily rise against the US dollar in five months, as went up by between 5 to 15 piasters.

On Monday, the USD-EGP exchange rate registered between EGP 17.9 and EGP 18 for selling.

The head of the research department in MubasherTrade, Amr El Alfy, said that the main reason behind the change in exchange rates is the recent decline of the dollar.

The rise in the value of the pound is not a major indicator of an improvement in the Egyptian economy, as the USD supply is yet to reach the needed level in the Egyptian market, as banks are still not able to meet the demand of all of its customers, El Alfy explained.

A weaker pound could help increase Egyptian imports, and revive the tourism sector, he noted.

Analyst Hany Farahat of CI Capital attributed the EGP rise to the increase in USD inflows, which was reflected on the Central Bank of Egypt’s (CBE) foreign reserves, which exceeded $30 billion for the first time in years.

As dollar inflows increase it is normal for the value of the Egyptian pound to grow, Farahat noted, adding that he expects another decrease in the price of the USD in front of the pound as more foreign exchange inflows go up.