March 25, 2023

The price of the dollar against the pound broke a new record in futures contracts.

historical level

Undelivered 12-month futures for the Egyptian pound jumped to 39.19 against the dollar, the highest all-time for the US currency against the pound, after it hit 39 yesterday Wednesday.

interest rates

This comes in light of conflicting expectations over next week’s US Federal Reserve decision on interest rates and whether it will keep raising interest rates to fight inflation or hold off on increases in the short term to contain the banking crisis, which is now rests on unrealized losses on US bonds in excess of $600 billion.

And with each increase in interest rates by the Federal Reserve, emerging markets are hit again, with funds moving towards safe haven and investment in the dollar, and thus investors are demanding higher premiums for investing in emerging markets, which is pushing their bonds lower. fast.

Egyptian bond insurance contracts recorded the second highest value in their history

Last night, insurance contracts for Egyptian bonds recorded the second-highest value in their history, near 1500 points, which was observed at the end of July.

Egyptian bonds are now trading at around 70% of face value.

International Monetary Fund

The decline coincides with the International Monetary Fund’s first review of the $3 billion financing package, a report on which is expected to be published within a few days.

Devaluation of the pound against the dollar

On the other hand, international banks’ expectations of another depreciation of the pound against the dollar pushed the price of the green currency to another increase on the black market, as the dollar traded between 34.5 and 35.55 pounds.

At the same time, the official exchange rate of the dollar against the Egyptian pound rose to 30.75 as the lowest purchase price and 30.95 as the highest selling price.

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