Egypt’s pound steady for 4th sale, dollar weakens on black market

CAIRO: The Egyptian pound stabilized for the fourth consecutive sale at 7.53 per U.S. dollar at a regular central bank auction Sunday, after 10 depreciations since Jan. 18 in a fight against the black market.

Meanwhile, the dollar dipped in the black market Sunday as dealers sold it for 8.73 EGP against 8.68 EGP for purchase, a black market dealer told The Cairo Post.

Black market traders refrained from selling the dollar until Saturday, after receiving another tough blow from the Central Bank of Egypt (CBE) Wednesday, after a $10,000 daily ceiling for cash deposits in hard currency for both individuals and companies, with a total monthly deposits limit of $50,000 imposed.

“The bank offered $40 million and sold $38.4 million at a cutoff price of 7.53 EGP per dollar,” the CBE said on its website Sunday. It remains the lowest level Egypt’s central bank allowed the local currency to reach since auctions began in December 2012.

In a step to tighten its grip over dollar trading on the black market, the Central Bank, whose auctions determine the rates at which banks sell the dollar to clients, widened the range in which banks can trade dollars Thursday to 10 piasters above or below the official rate, up from 3 piasters.

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