Egypt’s pound: how low will it go? | beyondbrics

Another day, another central bank dollar auction, and another slide in the value of the Egyptian pound to new lows. Where will it stop? After the market panic of early January, a disorderly devaluation seems to be off the cards for now – that’s according to the new governor of the central bank and several economists who spoke to beyondbrics.

Thursday’s auction was the eleventh since the central bank initiated the practice at the end of December in an effort to manage the decline of the currency by controlling access to dollars. After it sold $72.9m on Thursday the pound fell a further 0.3 per cent to reach 6.6 to the dollar, contributing to a total weakening of 6.3 per cent since the first auction on December 30.
Egypt’s pound: how low will it go? | beyondbrics