Egypt pound hits record low under new currency regime

CAIRO Sun Dec 30, 2012 6:13am EST

People walk in front of Central Bank of Egypt Headquarters in Cairo December 30, 2012. Egypt's central bank introduced a new currency regime on Sunday to conserve its foreign reserves, which it said had reached a critical level, a move bankers and analysts say may represent a controlled shift towards a free float. REUTERS/Amr Abdallah Dalsh

People walk in front of Central Bank of Egypt Headquarters in Cairo December 30, 2012. Egypt's central bank introduced a new currency regime on Sunday to conserve its foreign reserves, which it said had reached a critical level, a move bankers and analysts say may represent a controlled shift towards a free float.

Credit: Reuters/Amr Abdallah Dalsh

CAIRO (Reuters) - The Egyptian pound hit a record low on Sunday of about 6.30 to the dollar after the central bank introduced a new currency regime, bankers said.

The previous low for the pound, in October 2004, was about 6.26 to the dollar. The pound opened earlier on Sunday in the interbank bank market with bids of around 6.185 to the dollar.

The central bank said on Saturday it was introducing the new regime to conserve foreign reserves, which it said had fallen to a critically low level.

(Reporting by Patrick Werr)