Following the Central Bank of Egypt’s (CBE) auction on Monday, the Egyptian pound has continued to fall against the US dollar, registering EGP 7.53, up from EGP 7.51 in Sunday’s auction.
The CBE offered $40m in the auction, and sold $38.4m.
Meanwhile, on the black market, $1 registered EGP 8, up from EGP 7.78 the previous day. Meanwhile, official market rates on Monday recorded EGP 7.61 for buying and selling the foreign currency, up from EGP 7.57 for buying and EGP 6.0 for selling on Sunday.
The value of the US dollar has fluctuated for two weeks, after previously maintaining the same value at EGP 7.14 for a period of six months. The devaluation started with $1 being equivalent to EGP 7.19, and further jumped the following day to reach EGP 7.32.
The regulator bank, CBE, has increased the number of its weekly FX auctions to narrow the gap between the official and black market rates. However, the gap does not seem to have been significantly affected, as at the beginning of the week the US dollar reached EGP 7.59 on the official market and EGP 7.75 on the unofficial one.
The value of $1 is expected to reach EGP 8 in the official market before the Economic Summit in March.
The value of Egyptian pound has continued to depreciate against the US dollar, from EGP 6.04 the end of the transitional period marked by the election of former president Mohamed Morsi in June 2012, to EGP 7.53 officially on Monday.