Egyptian pound inches up at central bank dollar sale

05 Mar, 2014

CAIRO: The Egyptian pound strengthened slightly against the dollar at a central bank sale of foreign currency on Wednesday, but has been trading weaker on the black market.

The central bank sold $38.3 million to banks at the auction, with a cut-off price of 6.9505 pounds to the dollar, compared with 6.9506 pounds at Monday's auction.

On the black market, the dollar was offered at around 7.37 pounds on Tuesday, a market participant said.

The pound has been under pressure during three years of political turmoil.

Egypt's foreign currency reserves stood at about $17.3 billion pounds in February, down from $36 billion before the uprising that led to President Hosni Mubarak's downfall in 2011.

The central bank introduced dollar currency sales over a year ago.

In January, it held a $1.5 billion exceptional auction, its largest ever, to restock the market with dollars and curb unofficial currency trading.

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