The Central Bank of Egypt has devalued the Egyptian pound by 14.5 per cent, selling $198m at the new rate of E£8.85 to the US dollar in a special auction on 14 March.

The previous rate was at E£7.73, after a series of devaluations that year in 2015 then an appreciation in November.

The pressure to devalue the Egyptian pound has been building for months after foreign currency reserves fell to around $16bn and foreign currency liquidity on the local market dried up.

Observers expect a managed devaluation over 2016 to bring official exchange rates closer to black market rates which fluctuate around E£9 to the dollar.

Import-export firms, manufacturers and investors have been pushing for a devaluation after being unable to obtain the necessary quantities of foreign currency to do business since late 2015.

Project finance deals were also on hold due to the currency shortage.

Recent moves by the Central Bank to offer foreign currency savings certificates to expat Egyptians, relax limits on dollar deposits in local banks and restrict imports of luxury goods were seen as preparatory steps to a devaluation.