Omantribune
Oman Tribune
Omantribune
Omantribune Search News
Web Oman
    Google Search Button
      Tribune
- Oman
- Soccer World Cup
- Other Top Stories
- Middle East
- Business
- Sports
- India
- Pakistan
- Asia
- Europe
- Americas
- Columnists
- Editorial
- Oman Mirror
- Special Features
- Cinema
- PDF Pages
- Weather
- Travel
- Currency Rate
- Hospitals
- Pharmacies
- Services
- Flight Timings
- Museum Timings
Omantribune Home Omantribune About Us Omantribune Advertising Information Omantribune Archives Omantribune Subscribe-Form Omantribune Jobs Omantribune Contact Us
Thursday, November 27, 2014  

Mursi hopeful about stabilising Egyptian pound within days
CAIRO Egypt’s president held out hope that a weakening pound could stabilise within days under a new regime implemented to fend off financial ruin and safeguard reserves needed to ensure food and fuel imports in a political crisis.

Hit by political turmoil in the last month, the currency weakened to a record low on Sunday in a new dollar auctioning system implemented by the central bank.

The official rate worsened further at its second auction on Monday, with banks taking up the $75 million on offer at a cut off rate of 6.305, sending its traded market rate to a record low of around 6.35 per dollar.

“The market will return to stability,” President Mohamed Mursi said in remarks during a meeting with Arab journalists on Sunday, the state news agency Mena reported.

The pound’s fall “does not worry or scare us, and within days matters will balance out,” he added.  

The auctions are part of a shift announced on Saturday and designed to conserve foreign reserves, which the bank says are now at “critical” levels that cover just three months of the food, fuel and other goods Egypt imports.   

The head of the Egyptian banking federation said the new system of foreign exchange auctions was an “important first step” towards a free float of the pound.   Tarek Amer, who is also chairman of Egypt’s largest bank, state-owned National Bank of Egypt, said the new system was a success on its first day and had “significantly reduced” demand for dollars.  

The central bank accepted bids worth $74.8 million on Monday, with the cut-off price weakening from 6.2425 Egyptian pounds on Sunday. Before the first sale on Sunday it had traded as strong on the interbank market as 6.185 to the dollar.  Political turmoil over a new constitution has sent worried Egyptians scrambling to turn their savings into dollars, prompting officials last week to impose controls on how much cash could be physically carried out of the country.  

The changes announced on Saturday include regular foreign currency auctions and commercial bank officials say they point to an orderly devaluation of the pound after the central bank spent more than $20 billion, or more than half of its reserves, over the past two years to defend the currency. The currency crisis underlines the scale of the economic challenge facing Mursi, who has been grappling with the fall-out of a political crisis ignited by his move to drive through a constitution written by his Islamist allies.

Reuters
NEWS UPDATES
Oman
Tourism meeting to highlight opportunities for investment
NCSI introduces new smartphone apps
Zubair SEC promotes members at forum
TSC ties up with ILM to train employees
Other Top Stories
5 die as Houthis, tribesmen clash in Yemen capital
Oil output cut seen unlikely
More troops deployed to quell protests
US to increase troop presence in Afghanistan
Ghani warns India, Pakistan against proxy war
India
Benefit from ‘Make in India’, Sitharaman tells Arab states
Upgrades boost coastal security after 26/11
Teenager dies after being set on fire for resisting rape
Agony for Kuttanad farmers as thousands of ducks culled
Vaiko marks LTTE chief’s birthday
Sania vows to address gender inequality
Pakistan blocks 3 connectivity pacts
Women cannot be secured by curbing their freedom: Dattu
250 traced black money account holders ‘admit to foreign accounts’
Meghalaya’s most wanted held in TN
Sydney killing ‘too planned to be crime of passion’
Pakistan
Dispute-free South Asia my vision for region, says Sharif
Employees boycott polio drive as gunmen kill four workers
US drone strike kills 8 militants in N. Waziristan
Asif draws question mark on reliability of Washington as friend
Government to keep PTI Nov. 30 rally in check
Police rescue 26 ‘trapped’ girls
Middle East
Libyan air force behind Tripoli strikes: Thinni
Unamid asked to shut human rights office in Khartoum
Iran MPs finally okays new science minister
Baghdadi militia gain foothold in Libyan town of Derna
Sisi to focus on Libya in France
Lebanese icon Sabah dies at 87
Asia
HK police arrest student leaders, clear protest site
2 Bangla militants sentenced to death for killing police aide
Malaysia mulls anti-terrorism law to counter militant threat
Indo-Pak friction undermines S. Asian integration at Saarc summit
Lanka opposition candidate calls for unity government
7 students of Uighur scholar tried in secret
Business
S. Arabia, UAE unlikely to push for oil production cut
Opec’s other issue: Weak demand
Nigeria devalues currency as weak oil hits fisc
Goldman, BASF and HSBC in dock over metals price fixing
ECB to decide on bond buys in Q1
HP revenue drops in Q4 on weak demand
India laggard state banks face tough sell on capital raising plan
Europe
UK anti-terror law sparks concern among Muslims
UK gets phone records of 1,700 journalists in data breach case
Turkey bans reporting on ex-ministers’ graft probe
EU slams France over controversial dam project
Greeks in thrall over Alexander-era tomb discovery
Sports
Messi breaks record, Suarez breaks duck
Hafeez inches closer to double ton
Curry scores 40 to power Golden State over Miami
I am targeting a World Cup return: Harbhajan
Rare blow but cricket a dangerous game: Lara
S. Lanka triumph at home
Bangladesh seal Zimbabwe series
Americas
More troops deployed to quell protests
I feared for life in confrontation with teen: Cop
Top contender for Pentagon job bows out
National Guard, a force committed to maintain peace, safety
China plans to sue economic fugitives in US

Sports


International

© 2013 Oman Tribune. All rights reserved. Best viewed in 800 X 600 resolution