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

CAIRO, July 24 Thu Jul 24, 2014 6:12am EDT

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CAIRO, July 24 (Reuters) - The Egyptian pound was stable at a central bank dollar sale on Thursday but strengthened on the black market ahead of the Muslim Eid holiday next week.

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

The rate for the dollar sales has stayed within a very tight range since the beginning of June, after it had allowed the pound to weaken in May. It had offered $40 million on Thursday.

On the black market, the dollar changed hands for 7.39 pounds, one trader said, weaker than the rate of 7.40 pounds on Monday.

The rates at which banks are allowed to trade dollars are determined by the results of the central bank sales, giving the bank effective control over official exchange rates. (Reporting by Asma Alsharif; Editing by David Goodman)

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