Egypt is drafting its 2016-2017 budget on the basis of an exchange rate of EGP8.25 to the dollar compared to EGP7.75 this fiscal year, two government sources said on Monday, indicating the central bank is preparing to devalue.
Egypt's central bank kept the pound steady at 7.53 pounds to the dollar at a foreign exchange auction on Monday, and the currency remained steady on the black market.
The central bank has kept the official exchange rate steady
The Egyptian pound was stable on the black market on Wednesday while its official price edged higher after the central bank sold foreign currency.
The central bank has been in a stronger position to support the pound since Gulf Ar
The Egyptian pound weakened on the black market and the country's debt insurance costs hit their highest level since October 2008 as investors grow rattled by Egypt's deteriorating economic indicators.
The pound, which has
The Egyptian pound hit a 6-year low on Monday after banks reopened their doors to international deals.
The stock exchange, whose doors have been shut since January 27, has said it will remain closed through Tuesday at least.
Egypt's currency seems unlikely to rebound substantially from 3-1/2 year lows any time soon because investor appetite for Egyptian assets may be blunted by uncertainty before a 2011 election -- and the central bank may prefer a weaker pound.