Dollar exchange rate nears 10 Egyptian pounds for the first time

The US dollar’s exchange rate rose on the black market in Egypt to reach 9.75 Egyptian pounds for the first time in conjunction with the dollar shortage crisis, while the Central Bank of Egypt (CBE) said in a statement that it will offer an exceptional auction for the sale of $500 million to the banks in an attempt to cover the cost of imports of essential commodities.

The dollar continued to rise in the parallel market yesterday without any signs of decline amid a dollar shortage crisis, even after the state introduced dollar-denominated savings certificates to Egyptian expats working abroad, as well as the entry of loans in hard currency into the country.

A trader in the parallel market told Reuters that the dollar’s exchange rate jumped to 9.75 Egyptian pounds from 9.50 Egyptian pounds on Thursday.

Reuters quoted an official source at the CBE saying that the extraordinary auction announced by the bank aims to cover strategic imports. The central bank normally sells no more than $40 million at its regular forex auctions, which are held three times a week.