Egyptian banks attract $3bn since currency float
21 Nov 2016 - 21:53
Cairo: Egyptian banks have attracted some $3bn since Egypt took the dramatic step of floating its pound earlier this month, Central Bank Sub-Governor Tarek Fayed said yesterday.
The central bank abandoned its currency peg of 8.8 pounds to the US dollar on November 3 in a move it hopes will unlock foreign currency inflows and end a black market for dollars.
Fayed told a banking conference in Cairo the flotation had helped foreign currency stream back into the banking system.
“The central bank’s decisions could not have been delayed more than this and the results over the past two to three weeks were positive,” Fayed told a banking conference in Cairo.
“We have seen during this period how the banks were able to attract large dollar resources during the past period, amounting to around $3bn over the past two weeks.”
Egypt’s currency peg and a decline in foreign investment after the 2011 uprising had drained the central bank’s foreign reserves and forced it to ration dollars and impose capital controls before the flotation.