Egypt Devalues Pound Third Time in 2015 After Reserves Slide - Bloomberg Business

Egypt Devalues Pound Third Time in 2015 After Reserves Slide - Bloomberg Business:

"Egypt depreciated the pound for the third time this year after the nation’s foreign reserves tumbled and the currency fell to a record in black-market trading.
The pound weakened 1.3 percent to 7.9301 per dollar after the country’s central bank devalued it by the same margin at a regular dollar sale to local lenders, according to prices compiled by Bloomberg. That takes the currency’s decline for the year to 9.8 percent, making it the worst performer in the Middle East behind Algeria’s Dinar. Twelve-month non-deliverable forwards for the pound slumped 3.4 percent, the most on a closing basis in almost two months, to 10.2758 per dollar as of 3:35 p.m. in Cairo. Stocks fell the most this month. Egypt came under increased pressure to cheapen the pound after China’s surprise yuan devaluation in August fueled declines across emerging-market currencies as they sought to preserve competitiveness of their exports. Foreign reserves of the most populous Arab state fell the most in almost four years in September, the same month the country announced its current account deficit had ballooned to $12.2 billion, the biggest gap in central bank data going back to 2000."



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