Egypt's central bank kept the pound steady at LE7.53 to the dollar at a foreign exchange auction on Monday while the currency continued to strengthen on the black market.
The central bank has kept the official exchange rate steady for more than two months since letting the pound weaken at the beginning of 2015. This step and other measures have helped to reduce black market trading significantly.
The bank said it had offered $40 million at auction on Monday and sold $38.5 million at a cut-off price of LE7.5301 per dollar, unchanged from Sunday's auction.
The rates at which banks are allowed to trade dollars are determined by the results of official auctions, giving the central bank effective control over exchange rates.
The pound was trading at LE7.67 to the dollar on Monday, one market participant said, stronger than the LE7.71 on Sunday.
Black market traders say that volumes have fallen sharply since the central bank's drive to stamp out their transactions, including the introduction of a cap in February on the amount of dollars that can be deposited in banks.
The authorities hope this will signal to foreign investors that the economy has returned to normal after four years of turmoil, but Egyptian importers and exporters say the cap on dollar deposits has reduced foreign exchange liquidity and stifled business activity.
