Egypt's central bank (CB) has kept the pound stable at 8.78 to the dollar at its weekly foreign exchange auction, confounding expectations of an impending devaluation that had driven up the stock market. The central bank said it sold $118.6 million at its regular forex auction at the existing rate. The announcement confirmed earlier comments from bankers. Egypt devalued the pound by about 14 per cent in mid-March in an effort to crush an unofficial market for dollars that has burgeoned amid a foreign currency shortage that has hurt businesses and discouraged investment. But the unofficial market rate has since depreciated, putting renewed pressure on the central bank to take further action.
