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Wednesday, 16 October 2019

Egyptian pound weakens to fresh low of 7.46 per dollar

Waad Ahmed , Wednesday 28 Jan 2015
Pound
Egyptian pounds (Photo: AP)
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Egypt's pound weakened to 7.46 per dollar from 7.43 at a central bank auction on Wednesday, the weakest level it has been allowed to reach since auctions began in December 2012.

The bank offered $40 million dollars and the total accepted bids were $38.4 million at a cut off price of LE7.4601 per dollar.

Egypt's central bank sets the rates at which banks can trade keeping its grip over the official exchange rate. It has been devaluing the pound throughout the past seven auctions in an attempt to close the gap between the official and unofficial rates.

Several traders told Ahram Online that the unofficial rate strengthened on expectations of an exceptional FX auction on Thursday. 

Black market trade averaged 7.78 according to two traders.

The currency black market has grown in the past few years as political turmoil and economic uncertainty followed the uprising in 2011.

Analysts see the move by the central bank to loosen the grip on the currency as a means to ease strains on the balance of payments and attract investors ahead of an international economic aid conference in March.

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