Egypt minister: started to devalue pound to solve repatriation problem

Egypt has started to devalue its currency in order to address the shortage of hard currency which is still making it difficult for foreign portfolio and industrial investors to repatriate profits, Investment Minister Ashraf Salman said on Monday.

Speaking at a business conference in Dubai, Salman said: “It’s definitely a problem, not only for investors but foreign direct investors.

“The foreign reserves of Egypt are now $15 billion...which cannot support the flows into and out of the country.”

He added: “We are addressing the issue by starting to devalue the Egyptian pound over the past three weeks.”

The central bank allowed the pound to drop to around 7.63 from 7.15 against the U.S. dollar in the official market between late January and early February, though depreciation has halted since then.