The value of the Egyptian pound was further weakened on Tuesday among local lenders to register an average of EGP 17.8 per US dollar, falling from an average of EGP 16.8 on Monday, according to online data from four major banks.

However, in the black market, the greenback recorded an average of EGP 18.25, a trader told Ahram online on condition of anonymity.

The new rates come on the third working-day after the Central Bank of Egypt decided at the end of last week to float the pound against foreign currencies, allowing local banks to freely set the exchange rate in an attempt to attract foreign cash liquidity from the informal market and stabilise the country’s ailing economy.

Last week, the Egyptian Federation of Chambers of Commerce called on member merchants to refrain from dealing with the parallel market for two weeks and to reduce their imports – excluding essential commodities – in the next three months in an attempt to eradicate the black market.