CAIRO: The gap between the Egyptian pound's official and unofficial exchange rates narrowed on Thursday, with the currency strengthening against the dollar in the black market and remaining stable at a central bank dollar sale.
The central bank said it had sold $39.2 million at a cut-off price of 7.1402 pounds on Thursday, unchanged from its previous sales on Wednesday and Monday. It had offered $40 million.
The dollar was offered for 7.37 pounds in the black market on Thursday, stronger than Wednesday's rate of 7.40, a black market trader said.
Another black market trader said the dollar was unchanged from Wednesday at a rate of 7.30 pounds per dollar.
The pound had strengthened in the black market after the election victory last month of former army chief Abdel Fattah al-Sisi, who was sworn in as president on Sunday.
Traders had predicted a temporary appreciation in the parallel market following the election, citing hopes of new investment and aid from Gulf Arab countries which have already given billions in aid to help stave off an economic collapse.
The pound had traded at around 7.50 pounds to the dollar before the elections.
The rates at which banks are allowed to trade dollars are determined by the results of the central bank sales, giving the bank effective control over official exchange rates.
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