CAIRO Feb 24 The Egyptian pound
strengthened slightly at a central bank foreign currency sale on
On the black market the pound weakened slightly and traders
said news that the government had resigned, a move that should
pave the way for army chief Field Marshal Abdel Fattah al-Sisi
to declare his candidacy for the presidency, had little
immediate market impact.
"I don't think this news will have much economic effect
because it was expected and already factored in. Also it is
expected that the key ministers, interior minister and most of
the economic ministers, will remain," said Moheb Malak,
economist at Prime Securities.
"I don't think this changes much. The policy of the
transitional government is expected to remain in the same
direction," he said.
The central bank sold $38.6 million to banks with a cut-off
price of 6.9509 pounds to the dollar, fractionally stronger than
the cut-off price of 6.9511 from Thursday's auction. The bank
had offered to sell $40 million.
On the black market, the dollar was sold at 7.35 pounds on
Monday, slightly weaker than the 7.33 pounds on Thursday.
The pound has been under pressure during three years of
political turmoil. Foreign currency reserves were around $17
billion in January, down from $36 billion before the uprising
that led to president Hosni Mubarak's downfall in 2011.
The central bank introduced dollar currency sales over a
year ago. Last month, it held a $1.5 billion exceptional
auction, its largest ever, to restock the market with dollars
and curb unofficial currency trading.
(Reporting by Asma Alsharif; Editing by Susan Fenton)