Egypt won't float pound until foreign reserves recover

The Egyptian central bank will not float the country’s pound until foreign reserves hit $25 billion or $30 billion from the current $16.48 billion, the governor of the bank said on Sunday.

“Absolutely not,” Governor Tarek Amer responded to a question related to floating the country’s pound during an Egyptian talk show.

“When foreign reserves reach $25 or $30 billion then maybe we can think about it. We are mindful of society.”

The 2011 uprising that ousted the former leader, Hosni Mubarak, toppled the country’s economy as it is now under foreign currency deficiency. This has been attributed to the reduced number of tourists and investors in the country.

Egypt has however managed to hold the pound steady despite an overwhelming pressure to devalue it.

On the other hand, it has surprised the market by strengthening its 20 piasters in November.

The official rates are even far much stronger than the black market rate as it stood at 9.1 pounds per dollar on Sunday.