Egypt's central bank held the Egyptian pound steady at 7.73 to the dollar at a foreign exchange auction on Thursday following a depreciation over the past week, while the currency weakened on the parallel market. The central bank said it had offered $40 million and sold $37.8 million at a cut-off price of 7.7301 pounds per dollar, unchanged from Tuesday's rate.
The central bank had held the pound at 7.5301 pounds for the past five months until last Thursday, when it allowed it to weaken to 7.6301. On Sunday, the bank shaved a further 0.10 pounds off the rate. Analysts say allowing the pound to weaken in a controlled manner could boost exports and attract further investment. One currency trader said the pound was changing hands at 7.95 to the dollar and another said the rate had reached 7.97 pounds, both weaker than the 7.94 pounds quoted after Tuesday's auction and outside the band set by the central bank.