(AFP Photo)
Reuters — Egypt’s pound strengthened slightly at a central bank foreign currency sale on Monday.
The central bank sold $38.8m with a cut-off price of EGP 6.8786 per dollar versus EGP 6.8787 at its 7 November auction, the bank said. It had offered $40m.
The central bank introduced thrice-weekly dollar currency sales in late December to help to counter a run on the pound. It has spent tens of billions of dollars supporting the currency since Egypt’s 2011 popular uprising, which hammered tourism revenues and foreign investment.
The pound has been trading weaker than official rates in the black market. Late last week, dollars were being bought for EGP 7.11 and sold for EGP 7.12. A black market rate could not immediately be obtained on Monday.
Last week, the central bank said Egypt’s foreign reserves fell to $18.59bn in October from $18.71bn in September. Reserves have been under pressure since the 2011 uprising, but got a boost in July when Gulf Arab states sent the country $5bn after the army removed Islamist President Mohamed Morsi from power.
