The Central Bank of Egypt (CBE) offered on Monday a tender of US$40 million for auction to banks operating in the local market.
The tender is the 130th for non-periodic dollar auctions, which first started in December.
Financial experts, however, pointed to pressure on the CBE from the black market and exchange firms increasing the dollar price.
The bank’s treasury and capital markets sector chief said, “The black market exaggerates the dollar price. They try to pressure the CBE to increase the price.”
He added that dollar resources are available at the bank through recent aid from Arab countries.
He expected a one percent decline in interest rates on the recently offered treasury bills from the Finance Ministry and CBE, indicating a decreasing cost of debt.
Mohamed Taha, vice chief of the Banque du Caire, said the CBE targets covering the market while managing the available resources.
Mohamed Morad, Industrial Development Bank board member, said waiting lists at the bank to open documentary credits have disappeared in light of the increasing foreign cash reserve at CBE. He also expected improvements as foreign cash flows increase, expenditures are rationalized and resources recover.
Financial expert Bassant Fahmy called on CBE to continue its policy of dollar auctions to control its price and manage foreign cash to import raw materials, as well as food and strategic goods.
Edited translation from Al-Masry Al-Youm
