CAIRO: The Egyptian pound held steady by the central bank at a dollar sale on Tuesday, where $37.8 million was sold at a cut-off price of 7.7301 pounds per dollar, and weakened on the parallel market.
The official cut-off price remained unchanged from Sunday’s dollar sale and two traders said the dollar changed hands at 8.045 pounds in the parallel market, weaker than Sunday’s 8.03.
Egypt has sought to tame a once-thriving currency black market with measures such as a cap on dollar-denominated bank deposits.
The central bank gave permission in January to trade dollars up to 0.10 pounds above or below the official rate, with currency exchange bureaus allowed to trade at 0.15 pounds above or below the official rate.
The central bank had kept the pound at 7.5301 for five months until July, when it was allowed to slide to 7.6301. On July 5, the bank let it slip a further 0.10 pounds.
Allowing the pound to weaken in a controlled way could boost exports and attract further investment, but it also raises Egypt’s already large bill for imported fuel and food staples.