CAIRO: The Egyptian pound remained stable at 7.53 per U.S. dollar Sunday at a regular Central Bank foreign exchange auction, and held steady in the black market as well.
At the same time, the pound stabilized against the dollar in the black market as it was changing hands between 7.70 to 7.71 EGP per dollar, a very close price to 7.63 per dollar at the official market, a dealer told The Cairo Post.
Over the past month, the Central Bank of Egypt (CBE) allowed the pound to hold steady against the dollar after 10 consecutive depreciations starting Jan. 18. in an effort to control the black market.
“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 had allowed the local currency to reach since auctions began in December 2012.
The CBE usually hold dollar auctions every Sunday, Monday, Wednesday and Thursday. These auctions determine the rates banks sell the dollar to clients.
Widening the range in which banks can trade dollars to 10 piasters above or below the official rate, up from 3 piasters, and imposing a $10,000 daily ceiling for cash deposits in hard currency for both individuals and companies was part of CBE’s procedures to wipe out the black currency market.