Egypt's central bank kept the Egyptian pound steady at 7.73 per dollar at a foreign exchange auction on Tuesday after a depreciation earlier this month. The pound held steady at currency exchange bureaus.
The central bank said it had offered $40 million and sold $37.8 million at a cut-off price of LE7.7301 per dollar , unchanged from Sunday's rate.
The central bank held the pound at LE7.5301 for five months until earlier this month, when it allowed it to weaken to LE7.6301. On July 5, the bank let it slide a further LE0.10.
Analysts say letting the pound weaken in a controlled way could boost exports and attract further investment, but also raises Egypt's large bill for imported fuel and food staples.
Egypt has sought to tame a once-thriving currency black market with measures such as a cap on dollar-denominated bank deposits.
Two traders at currency exchange bureaus said the pound was changing hands at 7.88 per dollar on Tuesday, almost unchanged from the rate of 7.87/88 last Sunday.
The central bank gave banks permission in January to trade dollars up to LE0.10 more or less than the official rate, with an extra LE0.05for currency exchange bureaus.
