Experts praise CBE exceptional US$1.5 billion tender

Central Bank of Egypt (CBE) offered on Monday an exceptional tender to sell US$1.5 billion to banks in order to meet basic needs of clients and combat the black market.
Informed source from the bank said a comprehensive revision of all exchange firms operating in the local market is taking place after some were closed for manipulating the prices.
Speaking on condition of anonymity, the source referred to coordination between the bank and Interior Ministry to close any exchange firm and freeze its activities to guarantee stability of exchange market and limit unofficial transactions.
Regarding the exceptional tender, which is the fourth since the mechanism started in December 2012, the source said it targets fulfilling the market needs and marks foreign cash flow at banks as well as market stability.
Bassant Fahmy, exchange market expert, stressed importance of the timing of offering the new exceptional dollar tender in light of manipulating exchange prices in the black market as well as the critical period the country has been through.
Fahmy expected CBE to resume offering of the periodic and exceptional tenders to control the exchange prices.
Former CBE official Ali al-Husary attributed importance of the last tender to meet requests at banks to provide strategic goods through importing.
Husary indicated that CBE feels pressure on banks and exchange market, which prompts it offering periodic and exceptional dollar tenders to provide the foreign cash, while banks suffer shortage of dollar resources. He described the tender as correct measure.
Alaa Samaha, former chief of Principal Bank For Development & Agricultural Credit, called on CBE to provide the foreign cash to fulfill needs of individuals.
Edited translation from Al-Masry Al-Youm

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