Pressure builds on Egypt to devalue currency further

The renewed pressure on the pound has prompted speculation the central bank will need to act again when its monetary policy committee meets to decide overnight interest rates. — Reuters

CAIRO: The Egyptian pound lost ground on the black market again in recent days in a sign that halving its official value over the past year could still not be enough and the central bank may have to let it slide further.

Despite its pledge in October to allow supply and demand determine exchange rates, the central bank has been managing the currency in a tight band that has remained virtually unchanged at around 30.80 to 30.90 to the dollar for three weeks while the pound has slid to between 35 and 36 in the black market.