VOL. XLIV

No. 28

9-July-2001

EGYPT

Egypt Cuts Exchange Rate Peg, Eases Trading Band

The Egyptian Central Bank on 3 July adjusted the US dollar peg for the Egyptian pound downwards to $1=E3.90 from the previous rate of $1=E3.86, while at the same time widening the trading band for the local unit to 1.5% either side of the peg for rates against the dollar and Arab currencies and 2% for other foreign currencies. The move forms part of the Central Banks policy of managing a staged devaluation of the...