Egyptian pound steady at central bank sale, stronger on black market

Wednesday 29-10-2014 12:52 PM
Egyptian pound steady at central bank sale, stronger on black market

An employee counts money at a bank in Cairo September 4, 2014. REUTERS/Asmaa Waguih

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CAIRO, Oct 29 (Reuters) - Egypt's pound held steady at a central bank dollar sale on Wednesday but strengthened on the black market.

The bank said it sold $37.6 million, at a cut-off price of 7.1401 pounds per dollar, unchanged from the previous sale on Monday.

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. The bank offered $40 million on Wednesday.

In the unofficial market, one trader said the pound was trading at 7.49 pounds to the dollar at midday on Wednesday, stronger than Monday's rate of 7.50/53.

The rate for dollar sales has kept within a tight range since the beginning of June after the bank allowed the pound to weaken in May. (Reporting by Stephen Kalin; Editing by Louise Ireland)

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