The Egyptian pound weakened to a record low of 10 against the dollar on the black market on Monday as the country’s currency crisis continues to gather steam, according to Reuters.
Black market currency rates reached 10 against the dollar compared to last week’s EGP 9.8 per dollar, five traders told the wire agency.
The fall of the pound comes as import-dependent Egypt faces a foreign currency crisis that has pressured the government to devalue the pound.
In an effort to bridge the gap between official and black market rates, the Central Bank of Egypt devalued the country’s currency from 7.83 to 8.95 per dollar on March 14, which marked the first under current CBE governor Tarek Amer. The bank later strengthened it and adopted a more flexible exchange-rate policy.
Foreign currency reserves declined by more than 50 percent last month to USD 16.5 billion, from roughly USD 36 billion prior to the 2011 revolution, with Egypt struggling to regain the rapidly depleting reserves.