Egypt Pound Weakens After Central Bank Sells $74 Million

Egypt’s pound weakened for the eight day this month after banks bought almost all the dollars the central bank offered at today’s foreign-currency auction.

The currency depreciated 0.3 percent to 6.5827 a dollar as of 2:29 p.m. in Cairo, according to data compiled by Bloomberg. The pound has dropped 6 percent to a record low since the central bank started dollar auctions Dec. 30 in which the amount each bank can buy is capped.

The regulator said last month the policy seeks to protect what’s left of foreign reserves after they dropped to a “critical” level. The central bank sold $74 million at today’s auction, out of $75 million it had offered, according to an announcement on Bloomberg.

The cut-off price at today’s sale was 6.55 a dollar. Banks placing bids at that price received 50.68 percent of their demand, the data show.

The yield on the government’s 5.75 percent dollar bonds due April 2020 was little changed at 5.52 percent, according to data compiled by Bloomberg.

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