(Updates black market price in para 2)
CAIRO, June 11 The gap between the Egyptian
pound's official and unofficial exchange rates widened on
Wednesday, with the pound slipping against the dollar in the
black market and remaining stable at a central bank dollar sale.
The dollar was offered for 7.40 pounds in the black market
on Wednesday afternoon, having earlier changed hands at a rate
of 7.35/37. That was weaker than on Tuesday, when the dollar was
offered for around 7.25 pounds in the morning and 7.32 pounds in
The pound had strengthened in the black market after the
election victory last month of former army chief Abdel Fattah
al-Sisi, who was sworn in as president on Sunday.
Traders had predicted a temporary appreciation in the
parallel market following the election, citing hopes of new
investment and aid from Gulf Arab countries which have already
given billions in aid to help stave off an economic collapse.
The pound had traded at around 7.50 pounds to the dollar before
The central bank said it had sold $37.6 million at a cut-off
price of 7.1402 pounds on Wednesday, unchanged from its
last sale on Monday. It had offered $40 million.
Forex traders and economists have described the central
bank's decision to allow the pound to gradually weaken since
March as a managed depreciation. The central bank has not said
why it has been letting the currency weaken.
Business leaders have cited clarity on the direction of the
currency as a condition for further investment.
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 Shadia Nasralla and Stephen Kalin; Editing by