Egypt Pound Strengthens at Central Bank Currency Sale

The Egyptian pound strengthened at a central bank sale of foreign exchange on Monday, hours after violence broke out between supporters of deposed President Mohamed Morsi and the military, a banker said.

The central bank sold $37.6 million to banks, with the cut-off price at 7.0097 pounds to the dollar compared to 7.0184 pounds at Thursday’s sale, the banker said.

The banker had predicted the 87 basis point fall before banks submitted their bids on Monday morning.

On the black market, the pound strengthened as well, with one dealer offering to sell dollars for 7.25 pounds and buy dollars for 7.20 pounds, compared to 7.35 and 7.30 on Friday.

The central bank introduced the currency sales, held three times a week, at the end of December to help stave off a currency crisis and thwart a run on the pound.

Since then, the bank has allowed the currency to lose 12 percent of its value on the official market.

Source: Reuters