Egypt's central bank let the pound weaken on Monday for the second day running, allowing it to reach 7.24 pounds per dollar, its weakest level since auctions began in December 2012. The move, coming a day after the pound was allowed to weaken from 7.14 for the first time in six months, reinforced views that the government is aiming to encourage investment by letting the currency reach a price the market sees as fair. The bank offered $40 million and sold $38.4 million at a cut-off price of 7.24 pounds per dollar on Monday, the central bank said, weaker than Sunday's rate of 7.19 pounds. The consecutive rate cuts come days after the bank surprised with a cut to its benchmark interest rates of 50 basis points. The central bank did not give a reason for the move and could not be immediately reached for comment. The pound was changing hands in the black market at 7.87 pounds per dollar, one trader said, weaker than the rate of 7.80 quoted on Sunday evening. The rates at which banks are allowed to trade dollars are determined by the results of central bank sales, giving the bank effective control over official exchange rates, though there remains an active black market in the pound. http://english.ahram.org.eg/News/120706.aspx
