Some banks denied dollars at Egypt central bank forex auction -traders‏
Central Bank of Egypt -YOUM7 (Archive)

CAIRO: Some bankers in Egypt said on Tuesday they had been denied dollars at a regular central bank foreign exchange auction and there was some confusion in the market about the official rate.

The central bank uses regular auctions to help set the official exchange rate. An announcement was made for a foreign exchange auction to be held on Dec. 1, calling for bids to be submitted from 11 am to 11.30 am. No update on results or status of the sale had been made by 12.30 pm local time.

Three bankers said that they submitted bids and had been told by the central bank that it had “nothing to offer,” while another said they were told their bid was “noted”. It was not clear which banks had received dollars.

The denials were unusual and caused confusion in the market as banks had been accustomed to receiving a regular quota of foreign exchange at each auction.

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