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
Monday, July 28, 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
Salalah turns tourist hot spot
150 Tabseel sites get ready in Al Mudhaibi
Bait Al Zubair to stay open
Other Top Stories
Army captures Homs gas field as IS advances
5 die in bomb attack on Nigeria church
Eid to be celebrated on Tuesday
97 killed as militias try to capture Libya airport
Cameroon deputy PM’s wife abducted
India
Jurists’ views to be sought on bill to scrap collegium
Government mulls amendments to curb misuse of anti-dowry law
38 held, blame game starts over violence in Saharanpur
CBI inquires into Google mapping of defence installations
India move will boost ties: Nepal
Mobile wallet needs more time to gain fans
Pakistan
Government bid to call out army to secure Islamabad challenged in court
Islamabad saw more sectarian killings in 2013 than preceding decade
Middle East
Al Qaeda rebels kill 8 in Yemen
Militiamen parade bodies of IS rebels in Iraq city
In IS-ruled Mosul, residents in state of fear
No clue about cause of Air Algerie crash
Asia
Tainted Chinese food supplier to withdraw items
Philippines welcomes 100 millionth infant
Malaysian Airlines in financial turmoil
Bali goes ahead with mass dog culls despite criticism
Business
India’s rating to stay stable, says Morgan Stanley
Qatar spending growth at 11-year low
BSkyB to buy German, Italian firms to create EU media powerhouse
New asset bubbles likely to derail tepid global recovery
Cairn looks to extend Rajasthan oil block permit
Reliance Power to acquire Jaypee’s hydro projects
Fox likely to sell CNN despite higher tax bill, may not spin it off
India mulls media blitz to woo foreign investors
Sports
Hungry Ricciardo tastes victory
Dyke calls for overhaul in FA’s governing council
Test poised for close finish between Sri Lanka and S. Africa
Ashmeade, Gemili cruise in 100m
Kittel wins final stage but Nibali is 2014 champ
Dhoni warned by ICC over Jadeja row
Cook misses ton but Ballance makes up for captain

Sports


International

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