CBE governor: No intention to devaluate EGP

The Central Bank of Egypt Governor Tarek Amer denied reports on an intention to devaluate the Egyptian Pound.

In statements to MENA on Wednesday, he said parties who circulate these rumors seek to harm the Egyptian economy, industry and national security and stability.

Rumors spread on Tuesday that the dollar exchange rate hit 11 pounds for the first time in the black market.

The CBE stabilized the dollar exchange rate at 8.78 EGP during the FX auction on Tuesday. 

In March, economists and bankers welcomed the Central Bank of Egypt's decision to adopt a more flexible exchange rate policy after a sharp devaluation of the Egyptian Pound as much-needed measures to address a foreign currency crunch.

The CBE said in March that it decided to adopt a more flexible exchange rate regime that better reflects the underlying forces of supply and demand and, in turn, lead to greater transparency and foreign exchange liquidity through attracting greater investments and the correction of asset prices.

The statement came on the heels of an exceptional auction in which the CBE sold $198 million to local banks on Monday, allowing the Egyptian Pound to depreciate by over 14 percent of its value to EGP 8.85 against the US dollar.