Egypt accepts bids for $38.5 mln at forex auction

Reuters, Wednesday 5 Jun 2013

Egypt's central bank sold $38.5 million to banks in a foreign exchange auction on Wednesday, with the cut-off price edging weaker to 6.9774 Egyptian pounds to the dollar.

The cut-off price at Monday's auction was 6.9753 pounds.

The central bank has slowed the speed of the pound's fall over the last two weeks, and currency dealers say it seems reluctant to allow it to weaken below the psychologically important mark of 7.00 to the dollar.

The central bank introduced the auctions at the end of December to help stave off a currency crisis and thwart a run on the pound. Since then, it has let the currency weaken by more than 11 percent against the dollar on the official market.

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