Egypt’s central bank will offer $50 million at a currency auction today as the pound weakens amid an escalation of unrest since the second anniversary of the Jan. 25 uprising. The benchmark dollar bonds fell for a third day.
The regulator will auction $50 million to local lenders, which are able to bid for as much as $7 million each, according to its announcement on Bloomberg. The central bank sold $48.1 million of the U.S. currency at a Jan. 27 auction, the smallest amount since it started the sales on Dec. 30 in a bid to conserve foreign reserves. Banks received about 28 percent of what they sought that day.(...) The currency’s depreciation accelerated after the last auction as clashes in several Egyptian provinces killed more than 50 people, according to Health Ministry estimates. (...)
The central bank will also offer 5 billion Egyptian pounds ($751 million) of seven-day repurchase agreements today. The contracts allow government-debt holders to sell securities back to the regulator for access to temporary funds at 9.75 percent.