Egypt banks to stick to non-USD forex rates
Cairo, December 17, 2013
The Egyptian central bank has instructed banks to 'strictly conform' to prevailing international market rates in trading of non-US dollar foreign currencies, according to a statement seen by Reuters.
"Kindly note that banks are requested to strictly conform to pricing the non USD/EGP rates to their customers, using the prevailing international market rates," the statement said.
One market source said the instruction meant he was offering euros at 9.53 Egyptian pounds ($1.4) on Tuesday, compared to 9.84 on Monday.
The price of the Egyptian pound in dollars is already tightly controlled at official rates. The dollar was last quoted at 6.89 Egyptian pounds at official rates and has been trading around that level since early September. Dollars are changing hands at much stronger rates on the black market.
Clarifying its statement, the central bank said: "The cross rates should not be inflated in such a way that would reflect a higher embedded USD/EGP rate." - Reuters