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Egypt to Start Foreign Exchange Auctions as Reserves Plunge

Egypt’s central bank will start foreign-exchange auctions tomorrow in order to preserve foreign reserves after they plunged to “minimum and critical” levels.

The North African nation’s central bank said the sales and purchases of U.S. dollars will take place periodically and aim to “preserve foreign-currency reserves and ration their use,” according to an e-mailed statement today. The new mechanism will support the dollar interbank market, it said. Egypt’s net international reserves have slumped almost 60 percent in the two years since the start of an uprising that ousted former President Hosni Mubarak.