Gold prices in Egypt had a positive week, boosted by major changes in the markets following the historic decisions of the Central Bank of Egypt (CBE), which altered the market conditions significantly. However, there is still uncertainty about the next step and the consequences of these decisions on the local markets, according to the Gold bullion report.
The most popular 21k gold started trading on Saturday at EGP 3,270 per gram. During the past week, the local gold price increased by 10.8%, gaining EGP 355 per gram. It closed the week’s trading at EGP 3,270 per gram, after opening the week’s trading at EGP 2,915 per gram.
Last week, the CBE announced in an emergency meeting that it raised interest rates by 600 basis points, reaching 27.25% for the overnight deposit rate, 28.25% for the overnight lending rate, and 27.75% for the main operation rate.
Moreover, the CBE allowed the exchange rate to be determined by market mechanisms, which resulted in a rise in the official exchange rate in banks to record the highest level at around EGP 50.85 per dollar, with an increase of 66%.
This decision lifted the exchange rate for the first time in more than 14 months, after the exchange rate of the pound against the dollar in official banks had stabilized at EGP 30.95 per dollar throughout this period.