Wednesday 9 February 2011

Egypt pound stable, c.bank warns may step in again | Reuters

Egypt's central bank warned on Wednesday it was prepared to intervene directly in the currency market again after purchases on Tuesday strengthened the pound by more than one percent.

The Egyptian pound has been falling steadily since the eruption of political protests on Jan 25, and traders and strategists expect more losses. UBS analysts put the potential decline at as much as 25 percent within a month.

"We will intervene when we see the market is not orderly. If it is not, we will use our tools," Deputy Governor Hisham Ramez said by telephone, adding the market so far on Wednesday was quiet and orderly.

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