Egyptian pound stable at dollar sale and exchange bureaus

The Egyptian pound was held steady by the central bank at a dollar sale on Sunday, as it sold $37.8 million at a cut-off price of 7.7301 pounds per dollar, and was also stable on the parallel market.

The official cut-off price remained unchanged from Thursday's dollar sale and one trader said the dollar changed hands at 8.03 pounds in the parallel market, unchanged from Thursday.

Egypt has sought to tame a once-thriving currency black market with measures such as a cap on dollar-denominated bank deposits.

The central bank gave permission in January to trade dollars up to 0.10 pounds above or below the official rate, with currency exchange bureaus allowed to trade at 0.15 pounds above or below the official rate.

The central bank had kept the pound at 7.5301 for five months until July, when it was allowed to slide to 7.6301. On July 5, the bank let it slip a further 0.10 pounds.

Allowing the pound to weaken in a controlled way could boost exports and attract further investment, but it also raises Egypt's already large bill for imported fuel and food staples.

 


Leave a Reply

Your email address will not be published. Required fields are marked *