Egyptian currency hits fresh low on black market

AP News
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Posted: Jul 21, 2016 12:56 PM

CAIRO (AP) — Egypt's currency has fallen to new lows on the black market, with media reports saying it had reached levels of about 12 pounds to the dollar.

Thursday's slide comes a day after local newspapers carried comments by Central Bank Governor Tarek Amer that were taken to imply that another devaluation was in the works.

The Egyptian pound was last officially devalued in March but has since fallen to new lows, especially compared to the central bank's official rate of 8.78.

Years of unrest since the 2011 overthrow of longtime autocrat Hosni Mubarak have taken a heavy toll on foreign investment and Egypt's vital tourism sector, two key sources of foreign currency. Reserves fell 18.1 percent from June to December, shrinking to $16.5 billion, according to central bank data.