Egypt will change its dollar exchange rate for customs to 16 pounds from 18.5 pounds on Thursday, after the Egyptian currency strengthened significantly in recent days. Egypt's central bank floated its pound in November as part of a reform programme that helped secure a $12 billion IMF loan programme. But facing complaints from importers concerned that currency volatility would result in losses, the finance ministry in mid-January fixed the exchange rate for customs for a month, based on the prevailing rate.
It set the initial rate at 18.5 pounds to the dollar, in line with the inter-bank rate at the time. The finance ministry said in a statement on Wednesday the new rate of 16 pounds to the dollar would remain in effect until the end of February, after the pound strengthened to 16.5 on Wednesday, and be revised again.
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