Exchange Rate Of Us Dollar To Egyptian Pound
The exchange rate of US Dollar to Egyptian Pound has always been a topic of interest for people who are involved in international trade and investment. The US Dollar is one of the most dominant currencies in the world, while the Egyptian Pound is the official currency of Egypt. In this article, we will discuss the history of the exchange rate between these two currencies, the factors that affect their exchange rate, and the current exchange rate.
The History of Exchange Rate between US Dollar and Egyptian Pound
The history of exchange rate between US Dollar and Egyptian Pound dates back to the early 20th century. During that time, the Egyptian Pound was pegged to the British Pound, which was the dominant currency of the time. After the Second World War, the US Dollar became the dominant currency in the world, and the Egyptian Pound was pegged to it at a fixed rate.
However, due to various economic and political factors, the exchange rate between US Dollar and Egyptian Pound has been volatile over the years. In the 1970s, Egypt experienced a period of hyperinflation, which led to a significant devaluation of the Egyptian Pound against the US Dollar. In the 1990s, the Egyptian government implemented economic reforms that stabilized the exchange rate for a short period of time. However, in recent years, the exchange rate has once again become volatile due to various economic and political factors.
Factors that Affect the Exchange Rate between US Dollar and Egyptian Pound
There are several factors that affect the exchange rate between US Dollar and Egyptian Pound. The most important factors are:
- Inflation: High inflation in Egypt can lead to a devaluation of the Egyptian Pound against the US Dollar.
- Interest Rates: Higher interest rates in Egypt can attract foreign investment, which can increase demand for the Egyptian Pound and lead to an appreciation of its exchange rate.
- Political Stability: Political instability in Egypt can lead to a decrease in foreign investment, which can decrease demand for the Egyptian Pound and lead to a devaluation of its exchange rate.
- Trade Balance: A trade deficit in Egypt can lead to a decrease in demand for the Egyptian Pound, which can lead to a devaluation of its exchange rate.
The Current Exchange Rate between US Dollar and Egyptian Pound
As of August 2021, the exchange rate between US Dollar and Egyptian Pound is approximately 15.65 Egyptian Pounds per US Dollar. The exchange rate has been relatively stable in recent months, with small fluctuations due to various economic and political factors.
It is important to note that the exchange rate between US Dollar and Egyptian Pound is subject to change at any time due to various factors. Therefore, people who are involved in international trade and investment should monitor the exchange rate regularly and take appropriate actions to minimize their risk.
Conclusion
The exchange rate of US Dollar to Egyptian Pound is an important topic for people who are involved in international trade and investment. The history of the exchange rate between these two currencies has been volatile over the years, and the current exchange rate is subject to change due to various economic and political factors. People who are involved in international trade and investment should monitor the exchange rate regularly and take appropriate actions to minimize their risk.