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Egypt's Devaluation Euphoria Fades Away

  • Dollar squeeze returns as gains from devaluation fade
  • Liberalization critical need for pound, HSBC's Williams says
Egyptian Pound
Photographer: Shawn Baldwin/Bloomberg
Updated on

One month after Egypt sought to end a dollar squeeze with the biggest currency devaluation in 13 years, the country is back to square one.

Money changers in North Africa’s biggest economy are selling hard currency at 11.47 Egyptian pounds, a record 29 percent premium to the official rate of 8.8 pounds per dollar, according to a Bloomberg survey on Wednesday of eight dealers who declined to be identified because their prices violate central bank rules. That surpassed the 24 percent gap that existed on the eve of Governor Tarek Amer’s devaluation decision on March 14, but had virtually vanished soon after.