Egypt's central bank will take measures to calm the black market in the Egyptian pound , its governor said on Wednesday, after volatility this week due to a surge in commercial demand for dollars.
Hisham Ramez gave no details or timetable for the measures while talking with journalists during a visit to Lebanon.
The Egyptian pound was flat at a central bank dollar sale on Wednesday but volatile on the black market as the sudden demand for dollars added to concerns over Egypt's plans to repay a $2.5 billion Qatari deposit, traders said.
The bank sold $37.6 million on Wednesday at 7.1401 pounds per dollar, unchanged from its last sale on Monday. In the unofficial market, one trader quoted the pound around 7.75 pounds at midday, down from around 7.57 pounds on Thursday.
"We will take technical measures in the coming period to control the currency black market," Ramez said.
The rates at which banks are allowed to trade dollars are determined by the results of central bank sales, giving the bank effective control over official exchange rates.
A major surge in demand for dollars from a single large company early this week had forced exchange brokers to scramble for hard currency, driving up the price and creating volatility on the unofficial market, the trader there said.
"This commercial demand created the shortage," he said.
Another trader said pressure peaked late on Tuesday. Black market rates were quoted at levels as divergent as 7.55 and 7.68 by Wednesday afternoon.
"There is pressure because of the Qatari deposit," said the head of foreign exchange at one Egyptian bank. "You are talking about a country where there is a cashflow deficit. Imports exceed exports so there is an imbalance."
Egypt said it would repay a $2.5 billion deposit to Qatar this month, bringing to $6 billion the deposits it has returned to the gas exporter that supported President Mohamed Mursi of the Muslim Brotherhood.
Ramez said Egypt was "ready to repay the deposit on Nov. 28". Egypt's ties with Qatar soured after the army overthrew Mursi last year, but Cairo on Wednesday welcomed a Saudi call for Egypt to join a move among Gulf states to normalise relations with Doha.
