The Egyptian pound was devaluated by about 7.8 percent on Thursday, December 14, to a central rate of 4.50 to the dollar from 4.15. Egypt’s Central Bank (CBE) announced that the band for banks and non-bank dealers remains three percent, implying a minimum exchange rate of LE 4.365 per US dollar and a maximum of LE 4.635 per dollar, Prime Securities reported.
CBE will also inject an immediate $500 million of its reserves into the foreign exchange market through the banking sector, followed by a further $1.5 billion injection by June-end 2002, to be drawn from various Arab and international sources including the IMF, CBE Governor Mahmoud Abu Al-Ayoun told Al-Akhbar.
The move was taken as part of CBE’s efforts to ensure adequate liquidity in the foreign exchange market. CBE will now on review the core rate for the dollar exchange on a weekly basis, adjusting the currency band according to market conditions. — (menareport.com)
© 2001 Mena Report (www.menareport.com )