Central Bank of Egypt (CBE) offered on Thursday US$40 million as the 111th tender for foreign currency for banks.
CBE sold on Wednesday US$38.8 million for the local markets’ banks within the 110th tender for foreign currency, which offered US$40 million. On the same day, the Egyptian pound marked slight increase before the US dollar in the CBE auction.
The lowest price for the auction reached LE6.8813 compared to LE6.8816 last Monday.
CBE have offered around US$4.440 billion since it started applying the dollar auction mechanism, in addition to US$2.7 billion within exceptional tenders in April, May and September.
Tareq Helmy, former vice-chief of the Development and Agricultural Credit Bank, stressed necessity to reconsider the mechanism after exchange market and economy become stable, foreign cash resources from tourism, exports and transactions from Egyptians abroad are provided.
Dollar auctions were required while foreign cash resources were absent, according to Helmy. It was necessary to depend on them, however, they could be reduced after dollar has been provided. They are required, though, he added.
Passant Fahmy, exchange market expert, highlighted necessity of ongoing control by CBE over foreign cash demands to fulfill financial demands to import basic and strategic goods. She added that it’s still not the time to reconsider canceling or reducing the mechanism until the market becomes stable.
Arab aid, loans and deposits are loads over the government that should be paid within specific dates, according to Fahmy, who referred to providing the foreign cash in the meantime only to factories and to import basic needs.
Edited translation from Al-Masry Al-Youm
