Egyptian pound needs time to find equilibrium: Sisi

Published December 12th, 2016 - 08:00 GMT
Egypt devalued the currency by about a third from the former peg of 8.8 against the dollar and allowed it to drift lower. (File photo)
Egypt devalued the currency by about a third from the former peg of 8.8 against the dollar and allowed it to drift lower. (File photo)

The Egyptian pound continued to decline on Sunday, as it was traded at between EGP 18.2 and EGP 18.35 against the dollar in some banks.

The dollar was being sold at the Al Ahli Bank, Banque du Caire and Banque Misr at EGP 18.2, while it was bought at EGP 17.95.

Egypt's largest listed bank, the Commercial International Bank (CIB) had the dollar sold at EGP 18.35, while it was sold at EGP 18.4 in the Egyptian Gulf Bank.

Egypt's President Abdel Fatah al-Sisi said on Thursday that the pound was not valued fairly against the dollar, saying that it would strengthen over coming months.

"But for the equilibrium we are talking about to be reached we need some months," Sisi said.

Egypt floated the pound on Nov. 3 and raised interest rates by 300 basis points in a dramatic move welcomed by businesses as the key to unlocking investment.

It devalued the currency by about a third from the former peg of 8.8 against the dollar and allowed it to drift lower.

Egypt's dollar peg had drained the central bank's foreign reserves, which have been hit by reduced foreign investment following political turmoil in the past few years, forcing the bank to impose capital controls and ration dollars.

 

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