Licenses of 14 foreign exchange bureaus revoked to date – official

Wednesday 11-05-2016 09:37 PM

American dollar notes are displayed in this photo illustration in Johannesburg August 13, 2014. REUTERS/Siphiwe Sibeko

CAIRO, May 11 (Aswat Masriya) – The deputy governor of Egypt's central bank said on Wednesday that the licenses of 14 foreign exchange bureaus have been revoked to date for "violating the law".

The central bank has been adopting tough measures against exchange bureaus with 9 licensed bureaus taken off the market last month after it was proven that they "manipulated the exchange market" and speculated on the dollar on the parallel market.

The central bank has resorted to legal force against exchange companies through revoking licenses and referring firms to the prosecution, Reuters reported. 

Last month, the Egyptian pound weakened on the parallel market reaching EGP 11 against the dollar at a time when Egypt’s central bank maintained its rate at EGP 8.78.

On Mar. 14, the Central Bank of Egypt (CBE) devalued the currency by 14.5 per cent against the U.S. dollar. Two days later, it raised the Egyptian pound by 7 piastres, to reach EGP 8.78 against the dollar.

However, the gap between the official and the black market rates persists despite the central bank’s attempts to narrow it.

The central bank governor Tarek Amer previously stated that there was no intention to further devalue the Egyptian pound.

Egypt has been witnessing a foreign currency crisis due to pressures on its reserves as a result of a weakening tourism sector in addition to the decline in Suez Canal revenues.

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