CAIRO: Egypt’s pound weakened to 7.63 per dollar at a central bank auction on Thursday, down from 7.53 per dollar on Monday’s sale, the first depreciation since February.
This is the lowest level the local currency has been allowed to reach since the Central Bank of Egypt (CBE) began its auctions in December 2012.
“The bank offered $40 million and sold 38.8 million at a cutoff price of 7.63 EGP per dollar,” the central bank said on its website Thursday.
The pound hold steady at 7.53 per dollar since February after the CBE allowed it to weaken against the dollar in 10 consecutive depreciations as part of its fight against the dollar black market.
Egypt’s central bank also imposed a $10,000 daily ceiling for cash deposits in hard currency for both individuals and companies, depriving those exchanging their dollars outside the official market from a safe place to deposit their cash.
The International Monetary Fund’s (IMF) Director of the Middle East and Central Asia Department Masoud Ahmed, welcomed Egypt’s central bank procedures to address the parallel market.
Having a unified market “would help create the basis for more investment, and better functioning of the exchange markets, and as a result encourage investment and growth,” Masoud said during a press briefing on the sidelines of the World Bank Group and IMF 2015 annual spring meetings in Washington, D.C in April