Dollar selling price stabilises in Egypt after reaching record-high

Ahram Online , Wednesday 2 Jan 2013

After Egypt's Central Bank announced regular currency auctions to curb demand on the US dollar, the Egyptian pound settles during currency trading operations Tuesday

U.S Dollar

The US dollar stabilised against the Egyptian pound Wednesday during currency trading operations in banks and exchange bureaus, after the pound weakened to an eight-year low against the dollar earlier this week.

Banking sources said that the dollar selling price stabilised today after it had reached an average of LE 6.42 on Tuesday, a record-high rate, while the average purchase rate was almost LE 6.38.

President Mohamed Morrsi announced on Monday that the Egyptian pound would "balance out within days" against the dollar, as the government took all necessary measures to end the dollar shortage. 

Central Bank of Egypt (CBE) had recently announced regular currency auctions, as part of a newly introduced mechanism to curb demand on the US dollar. 

CBE also announced several procedures to pre-empt a looming foreign currency crisis, including putting a limit on corporate cash withdrawals at $30,000 per day and placing a one to two per cent administrative fee on individuals who purchase foreign currencies. 

The Egyptian pound plummeted to an eight-year low against the US dollar on Sunday afternoon, following a currency auction in which the central bank sold $75 million to local banks after it had been constant for years on average selling rate of LE6.2.

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