Egypt tightens dollar trading band on interbank market

Reuters, Monday 4 Feb 2013

In a move to curb the currency decline, the Central Bank of Egypt tightens the limit in which local banks can sell US dollars to 0.01 per cent

A man stands outside an exchange bureau in Cairo (Photo: Reuters)

Egypt's central bank has tightened the pound's trading band in the interbank foreign exchange market in an apparent move to slow the currency's decline, a forex dealer at a Cairo bank said on Monday.

Banks may now only buy or sell dollars or their equivalent to other banks in a band of 0.01 pounds above or below the weighted average bid at the central bank's regular currency auctions, the dealer said.

Previously, the limit had been 0.5 per cent above or below the average bid.

Political strife has triggered a flight into dollars and other foreigncurrencies, putting renewed pressure on Egypt's foreign reserves.

Short link: