CAIRO – The Egyptian pound has fallen to its lowest level ever against the dollar, after a central bank auction again allowed buyers to bid higher prices for the U.S. currency.
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The bank, which controls the official exchange rate, set a cutoff price of 7.53 Egyptian pounds per dollar in an auction that sold $38.4 million, compared to a previous rate of 7.51.
The central bank in January allowed Egyptian banks to trade dollars at up to 0.10 pounds above or below the official exchange rate. On Monday, many were selling dollars above 7.60 pounds.
The pound began a steady decline in mid-January; previously the exchange rate had not changed for six months. Investors and economists see the currency as overvalued and local demand for dollars has fueled a robust black market.