CAIRO: The Egyptian pound remained stable at 7.53 per U.S. dollar Sunday, the same level of Central Bank’s last dollar sale Thursday, as it did not hold its regular Sunday auction.
At the same time, the pound held steady against the dollar in the black market as it was changing hands at between 7.70 to 7.71 EGP per dollar, a very close price to the official market, a dealer told The Cairo Post.
In a surprise move, the bank did not offer its typical hard currency auction Sunday, and tended to use the interbank system instead.
“The CBE sold today, March 1, 2015 USD 420 million in the interbank market to clear all outstanding strategic goods namely, staple commodities, raw materials and pharmaceuticals,” the CBE posted on its website.
The CBE usually hold dollar auctions every Sunday, Monday, Wednesday and Thursday. These auctions determine the rates banks sell the dollar to clients.
“This is the first time to apply the interbank market since December 2012,” Governor of the CBE Hisham Ramez told Youm7 Sunday, noting that the CBE plans to depend on this mechanism besides the dollar auctions in the coming period.
Over the past three weeks, the Central Bank of Egypt (CBE) allowed the pound to hold steady against the dollar after 10 consecutive depreciations in a fight against the black market since Jan. 18.
Egypt’s central bank widened the range in which banks can trade dollars to 10 piasters above or below the official rate, up from 3 piasters. It also imposed a $10,000 daily ceiling for cash deposits in hard currency for both individuals and companies in light of its clampdown on the parallel market.