(Refiles to clarify Wednesday reference in 8th paragraph) CAIRO, April 3 (Reuters) - The Egyptian pound hit its weakest rate in six months on Thursday and the central bank allowed it to fall for the fourth time in five auctions, while a persistent dollar shortage is keeping prices in the black market high above official rates. The rates banks are allowed to trade dollars at is determined by set ranges around the results of regular central bank dollar sales, giving the central bank effective control over rates in the official market. "We need to see bigger and much more prolonged movement in the pound before we can say the central bank is loosening its grip on the currency," said William Jackson, London-based emerging markets eco**mist at Capital Eco**mics. "We still think the pound needs to fall in order to regain external competitiveness, but the financial support from the Gulf has eased strains on the balance of payments meaning the central bank was able to keep the pound stable." Saudi Arabia, Kuwait and the United Arab Emirates have showered Egypt with billions of dollars in aid since the army deposed Islamist President Mohamed Mursi last July following mass protests against him.
04-03-2014, 07:57 PM
Egypt pound at six-month low, weakens at c.bank sale, on black mkt
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