Egypt pound strengthens at central bank sale, steady on black market

Reuters, Wednesday 10 Jul 2013

Cut-off price for dollar reaches LE6.9992 at Wednesday Central Bank of Egypt forex auction, down from LE7.0097

Egyptians hold money inside a currency exchange office in downtown Cairo (Photo: AP)

The Egyptian pound strengthened at a central bank sale of foreign exchange on Wednesday, for the third time since the military removed Islamist president Mohamed Morsi from power one week ago.

The central bank sold $38.8 million to banks, with the cut-off price at 6.9992 pounds to the dollar compared to 7.0097 pounds at Monday's sale, the bank said.

On the black market, the pound was steady, with one dealer offering to sell dollars for 7.25 pounds and buy for 7.20 pounds.

The central bank introduced the currency sales, held three times a week, at the end of December to help stave off a currency crisis and thwart a run on the pound.

Since then, the bank has allowed the currency to lose 12 percent of its value on the official market.

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