The Central Bank of Egypt (CBE) provided banks operating in the domestic market $18.7m on Tuesday through its weekly auction.
The CBE sold US dollars at a fixed price of EGP 9.78. Banks have been directed to sell the US currency to their customers at a price of EGP 8.88.
According to Osama El-Menilawy, an assistant general manager to the financial sector at a private bank operating in Egypt, the CBE did not direct banks to provide US dollars to finance the import of basic commodities. However, banks often allocate foreign currency holdings to importers for the import of basic commodities.
In the informal market, traders observed that the demand for the dollar is going through a state of calm. Thus, the depreciation of the value of the Egyptian pound against the US dollar has held at just under EGP 11.
