The Egyptian pound hit its weakest rate in six months today and the central bank allowed it to fall for the fourth time in five auctions, while a persistent dollar shortage is keeping prices in the black market high above official rates.
The central bank sold dollars at a cut-off price of 6.9651 pounds at its auction on Thursday, weaker than the 6.9525 pounds on Wednesday of last week when it allowed the pound to weaken for the first time since Jan. 8.
The rates banks are allowed to trade dollars at is determined by set ranges around the results of regular central bank dollar sales, giving the central bank effective control over rates in the official market.