The exchange rate of the UAE dirham against the Egyptian pound (AED/EGP) settled on slight changes during trading today, Wednesday, amid anticipation of possible declines in the Egyptian pound, while the UAE dirham maintained its stability in light of the economic expansion taking place in the country. Investors followed reports that showed the UAE’s tendency to expand crude oil production. The Abu Dhabi National Oil Company (ADNOC) announced that it is working to raise the company’s production capacity of crude, as it aims to reach nearly five million barrels of oil per day within 5 years. This is after the approval of the Board of Directors. In other news, reports from some Western banks showed positive expectations about the expansion of offerings in the Gulf until 2023. In the details, both Citigroup and Goldman Sachs issued expectations of a boom in offering companies in the Gulf countries in general during the next year, to continue the recovery that was recorded. during the current year.
On the other hand, the price of the Egyptian pound stabilized in banks today, recording slight movements, amid expectations that the pound will be exposed to more pressures in the coming period. At the beginning of the week, a report was issued by the Japanese Bank of Nomura, which placed the Egyptian currency at the top of a list of currencies at risk during 2023. Analysts also attributed the current pressure on the Egyptian currency to the large volume of liabilities that Cairo owes, due over the next year, which exceeded $28 billion. This comes amid the Egyptian government’s continued efforts to launch initiatives that aim to provide more foreign currency. The latest reports issued today revealed that Saudi Arabia has renewed its $5 billion deposit in the Central Bank of Egypt, in order to support Egypt’s position in obtaining a $3 billion International Monetary Fund loan.
On the technical front, the pair continued trading in a general bullish trend, as the pair is trading above the moving averages 20, 50, 100, and 200, respectively, on today’s time frame, indicating the general bullish trend recorded by the pair on the long term. The pair also traded the highest support levels, which are concentrated at 1.855 and 1.6130, respectively. While the pair is trading below the resistance levels that are concentrated at 2.12 and 2.526, respectively. The pair is not expected to witness any change in the general direction on the long term.
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