Egypt bank releases $800 million for vital imports
Country's currency down more than 10 percent over the last six months
CAIRO (AP) — The Central Bank of Egypt has conducted an exceptionally large foreign exchange auction, selling $800 million to banks with clients who urgently need US dollars to pay for basic imports like wheat and materials for industry and medicine.
The first such auction geared toward purchases of staple commodities was in mid-April, when the bank released $600 million.
Wednesday’s auction was seven times the usual weekly amount. The bank’s auction system has helped regulate devaluation of the Egyptian pound, down more than 10 percent in six months.
On Wednesday, the central bank sold the dollar at 7.01 Egyptian pounds.
A banker with inside knowledge says food imports took priority ahead of the Muslim holy month of Ramadan in July. He spoke anonymously because he was not authorized to release the information.
Copyright 2013 The Associated Press.