Egypt's Morsi unfazed by currency fall

Reuters and Ahram Online , Monday 31 Dec 2012

Currency levels will stabilise to normal rates, President Morsi assures

President Morsi
Egypt's President Mohamed Morsi (Photo: Reuters)

The Egyptian pound's fall to a record low does not worry or scare the government and the situation will "balance out within days", said President Mohamed Morsi during a meeting with Arab journalists on Sunday evening, according to state news agency MENA.

The Central Bank of Egypt 's regular currency auctions, as part of newly announced mechanisms, is expected to curb the demand on the US dollar. 

The head of the Egyptian banking federation described a system of foreign exchange auctions introduced by the Central Bank on Sunday as an "important first step" towards a free floating of the pound.

Tarek Amer, the chairman of the country's largest bank – the state-owned National Bank of Egypt, said the new system was a success on its first day and had "significantly reduced" the demand for dollars.

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