CAIRO: The Egyptian pound hit a 10-month low yesterday as the central bank let the local currency weaken further, while a persistent dollar shortage keeps prices on the black market high above official rates.
The bank said it sold $40m at a cut-off price of 7.005 pounds, weaker than the rate of 6.9976 pounds at its last sale yesterday and the seventh drop in a row. The closely-linked interbank rate rose to 7.0149 pounds, its weakest since July.
The rates banks are allowed to trade dollars at are determined by the results of the central bank sales, giving the bank effective control over official exchange rates. Three years of political
turmoil have unnerved tourists and foreign investors, leaving Egypt’s economy suffering
from a persistent dollar shortage.Reuters
