1 January 2013

Egypt: Pound Fall Temporary, Central Bank Takes Daily Measures - Presidency

The devaluation of the Egyptian Pound against the U.S. Dollar is temporary, presidential spokesman Yasser Ali said on Tuesday.

Egypt's Central Bank is taking measures on a daily basis to deal with this challenge, Ali stated.

"Fears regarding the banking system are also being dealt with," the Middle East News Agency quoted the spokesman as saying.

President Mohamed Mursi told journalists last Sunday that the Egyptian pound will stabilize within days.

The central bank system under which the bank auctions dollars to meet banks' needs is the important first step towards a free float, head of Egypt's banking federation Tarek Amer has said.

The auctions are part of a shift announced last Saturday and designed to preserve foreign reserves, which are now at "critical" levels, Amer added.

Copyright © 2013 Aswat Masriya. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.