New mechanisms for dollar circulation at banks

Central Bank of Egypt (CBE) issued new mechanisms to allocate US dollars for banks in weekly auctions, an official banking source told MENA on Thursday.

The source, who requested anonymity, said the CBE issued three new mechanisms to regulate allocating US dollars to banks.

The mechanisms aim to guarantee that the banks are committed to providing foreign currency for their clients to fund importing basic commodities, provide a wide-range of clients with foreign current especially junior clients and flexibility to provide clients with US dollars via currency centers in light of limits authorized by regulatory authorities.

Since December 2012, Egypt has controlled the exchange rate through weekly auctions of foreign currency, lately strengthening an overvalued pound by 0.20 pounds against the dollar to 7.73 pounds.