Egypt’s pound stable at 7.73/dollar on official Market
A man hold U.S. dollars - REUTERS/Beawi Harta

CAIRO: Egypt’s pound held steady at 7.73 per dollar for a second time in a central bank foreign exchange auction on Thursday, unchanged from last sale on Tuesday, the Central Bank of Egypt (CBE) posted on its website.

The central bank devaluated the pound twice in a week, each by 10 piasters. On Sunday, the local currency hit its lowest level since the CBE started FX auctions in December 2012, amid expectation of further devaluation in the coming days.

“The bank offered $40 million and sold 37.8 million at a cutoff price of 7.73 EGP per dollar,” the central bank said Thursday.

The dollar was sold at banks at 7.83 EGP on Thursday, 0.10 EGP above the official rate.

Egypt’s central bank usually holds foreign exchange auctions on Sunday, Tuesday and Thursday every week. Such auctions determine the rates at which banks can sell the dollar to clients.

Egypt’s pound had held steady at 7.53 per dollar for five straight months after the CBE allowed it to weaken against the dollar in 10 consecutive depreciations starting January 18, as part of its fight against the dollar black market.

The central bank also imposed a $10,000 daily ceiling for cash deposits in hard currency, depriving those exchanging their dollars outside the official market from a safe place to deposit their cash.

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