Egypt devalues currency for second time in a week

18 October 2015

The official rate will sit at EGP8.03, a 2.5 per cent fall since 15 October

Egypt’s Central Bank allowed the Egyptian Pound to devalue by 1.25 per cent on 18 October, banking sources have told MEED.

The move follows the devaluation of the currency by 1.25 per cent on 15 October, meaning the Egyptian currency has devalued by a total of 2.5 per cent since then.

The official rate will sit at EGP8.03, which is a 2.5 per cent fall from 15 October. This will be the first time the exchange rate has gone beyond EGP8.

The central bank’s auction system, which is set to close at 1pm local time on 18 October, will please investors who have been calling for a devaluation of the currency. An overvaluation of the currency has continued to deter foreign investors, with many criticising the central bank for rigid exchange rate policies.

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