CAIRO: The Egyptian pound weakened to its lowest in almost seven years against the dollar on Wednesday as treasury bills matured and investors shifted their funds out of Egypt, traders said.
Volume was light, said one. Most foreign investors cashed out of T-bills shortly after the uprising that toppled Hosni Mubarak, and the amount they still hold still is small.
Bids on the pound edged to as weak as 6.0085 to the dollar from Tuesday’s low of 6.0061. It last reached that level on Jan. 4, 2005.
Egypt’s central bank has helped stem a decline in the pound over the last 11 months by drawing down its foreign reserves.
Net foreign reserves sank $1.87 billion last month, central bank data show, with many investors pulling funds from the country ahead of a parliamentary election and after violent protests against the ruling military council erupted in Cairo.
Reserves were $20.2 billion in November, down from around $36 billion at the start of the year.
