03 November 2016
Egypt announced on Thursday it had floated the pound and hiked interest rates by 300 basis points, a move designed to stop the currency’s sharp drop in the black market.
Bankers told Reuters they had been informed that the central bank would set an initial guidance rate of 13 pounds to the dollar at a sale at 1300 local time (1100 GMT) and allow free bids and offers while the market converges on a real price. Read more here.
“Out of the central bank’s keenness to reassure confidence in the Egyptian economy and create financial stability and decrease inflation, the central bank has decided to take several actions to correct the policy of exchange of foreign currency through floating the currency exchange rates,” a copy of the bank’s statement seen by Zawya read.
Egypt’s central bank also announced it will offer $4 billion at a special foreign exchange auction on Thursday, bankers told Reuters. Read more here.
Egypt's blue-chip stock index jumped 8.3 percent, with many stocks rising their 10 percent daily limits, in the opening minutes on Thursday after the central bank’s news was released. Read more here.
Earlier this week, the dollar was being sold at 18-18.2 pounds and bought at 17.5-17.85 on the black market, more than twice the official rate of 8.8 pounds. Read more here.
© Express 2016
Egypt announced on Thursday it had floated the pound and hiked interest rates by 300 basis points, a move designed to stop the currency’s sharp drop in the black market.
Bankers told Reuters they had been informed that the central bank would set an initial guidance rate of 13 pounds to the dollar at a sale at 1300 local time (1100 GMT) and allow free bids and offers while the market converges on a real price. Read more here.
“Out of the central bank’s keenness to reassure confidence in the Egyptian economy and create financial stability and decrease inflation, the central bank has decided to take several actions to correct the policy of exchange of foreign currency through floating the currency exchange rates,” a copy of the bank’s statement seen by Zawya read.
Egypt’s central bank also announced it will offer $4 billion at a special foreign exchange auction on Thursday, bankers told Reuters. Read more here.
Egypt's blue-chip stock index jumped 8.3 percent, with many stocks rising their 10 percent daily limits, in the opening minutes on Thursday after the central bank’s news was released. Read more here.
Earlier this week, the dollar was being sold at 18-18.2 pounds and bought at 17.5-17.85 on the black market, more than twice the official rate of 8.8 pounds. Read more here.
© Express 2016
