Egyptian pound steady on official and black market
The central bank has kept the official exchange rate steady for more than a month after letting the pound weaken in an attempt to wipe out black-market trading
Egypt’s central bank kept the pound steady at 7.53 pounds to the dollar at a foreign exchange auction on Wednesday, and the domestic currency was unchanged on the black market.
The central bank has kept the official exchange rate steady for more than a month after letting the pound weaken in an attempt to wipe out black-market trading.
The bank said it offered $40 million at auction and sold $38.4 million at a cut-off price of 7.5301 pounds per dollar, unchanged from its last auction on Monday.
Black-market traders said volumes have fallen dramatically since the central bank’s move against them and since it imposed a cap in February on the amount of dollars that can be deposited in banks.
The limit discourages use of the black market because those who exchange dollars outside official channels are deprived of a place to keep their funds.
One trader said the dollar was selling for 7.65 pounds on the black market on Wednesday, unchanged from Monday.
The rates at which banks are allowed to trade dollars are determined by the results of official auctions, giving the central bank effective control over exchange rates.
Also Read
-
Egypt’s Suez Canal revenue at $445.5 mln in December
The fastest shipping route between Europe and Asia is one of Egypt’s main sources of foreign currency Economy -
Egypt’s foreign reserves fall to $15.88 bln at end-Nov.
Egypt's foreign currency reserves fell to $15.88 billion at the end of November from $16.91 billion the previous month Economy -
Egypt tourist numbers jump 70 pct in Q3 despite Sinai insurgency
Tourism is a main source of foreign currency for Egypt but it was badly hit after the 2011 uprising Economy -
Currency black market shows limits of Egypt’s recovery
Many overseas Egyptians’ prefer to send money home via the black market, where they get better exchange rates Economy -
Egypt lowers currency reserves target to $16bn by end of June
Egypt has lowered its target for foreign-currency reserves to $16 billion by the end of June, Planning Minister Ashraf El Araby told Al Arabiya. The ... Economy -
Egypt relaxes foreign currency rules
Egypt, which is in need of foreign currency, is relaxing its rules on how much cash air travelers can bring into the nation. Egyptian airport ... Business -
Egypt to offer $75 million at foreign currency auction
Egypt’s central bank said it would offer $75 million to banks at a foreign currency auction on Tuesday, the same amount offered at its previous ... Business
