Egyptian Pound Steady On Official Market, Strengthens On Black Market

The Egyptian pound was unchanged at a central bank dollar sale on Monday and strengthened on the black market.
The bank offered $40 million at the sale and said it had sold $38.4 million at a cut-off price of 7.1401 pounds to the dollar, a rate unchanged from its last sale on Sunday.

The rates at which banks are allowed to trade dollars are determined by the results of central bank sales, giving the bank effective control over official exchange rates.

In the unofficial market, one money changer said the pound was trading at 7.75 to the dollar on Monday, stronger than levels of 7.79 reported on Sunday.

The central bank introduced a fourth weekly dollar auction in December as part of efforts to curb a flourishing currency black market after the gap between the official and unofficial rates widened.

Though the pound strengthened on Monday, overall the move has so far failed to narrow the gap substantially.

Source: Reuters