Egyptian pound steady at dollar sale, lower at parallel market

Reuters , Tuesday 24 Nov 2015

The Egyptian pound was stable at a dollar sale on Tuesday, with the central bank selling $37.8 million at a cut-off price of LE7.7301 per dollar, while the currency weakened on the parallel market.

Earlier this month the central bank surprised the market by strengthening the pound by 20 piasters from LE7.9301 to the dollar.

The official cut-off price was unchanged from Sunday's dollar sale, but one trader said the dollar changed hands at LE8.60 in the parallel market on Tuesday, compared with LE8.55 on Sunday.

Egypt announced in October that Hesham Ramez would be replaced as central bank governor this month by senior banker Tarek Amer. The move was welcomed by traders, who expect a new approach to the country's currency crisis.

Cairo 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 bureaux allowed to trade at 0.15 pounds above or below the official rate. 

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