A US$600 million auction proposed by the Central Bank of Egypt Sunday reduced price of dollars on the black market to LE7, officials said.
A prominent official said the “sharp” decline in the price of the dollar compared with the Egyptian pound on the black market directly resulted from the Central Bank’s intervention.
The official said the Central Bank would announce strict measures to control the market.
Belal Khalil, vice chief of the exchange companies division, said the dollar sale price on the black market ranges from LE7.10 to LE7.15. The official exchange rate is LE6.9.
If the Central Bank resumes its current policies of providing dollar liquidity to banks for no more than two weeks, the dollar price on the official and black markets will not differ in the future, officials say, meaning the black market would not be eradicated.
Central Bank Governor Hesham Ramez said the bank deals with the foreign cash reserves professionally.
The bank granted $3 million to the public sector to fund basic commodities from 31 December to 5 March. It granted $735 million to the public fuel authority and LE600 million to supply authorities.
In a speech read Sunday on his behalf by his deputy, Gamal Negm, Ramez said financial indicators point to the safety of the cash policy, including capital adequacy.
Edited translation from Al-Masry Al-Youm
