Reuters - Video

EDITION: U.S. | U.K. | IN

Top News

Egypt pound hits record low

Monday, December 31, 2012 - 01:13

Dec 31 - With economy in critical condition after nearly two years of unrest, Egypt central bank allows the pound to slip. Lindsey Parietti reports.

▲ Hide Transcript

View Transcript

Egypt's pound has hit a record low against the dollar as the country struggles to revive its economy. A new currency regime announced by the Central Bank Saturday prompted the devaluation of the pound from around 6.1 to 6.3 to the U.S. dollar. The bank had previously resisted any sharp drop during nearly two years of unrest that has crippled the economy, but it said foreign reserves were now at a critical level. Egyptians have been selling off local currency and the stock market has also taken a blow amid uncertainty over the country's political future. Prime Minister Hisham Kandil said on Sunday that the economy was fragile, adding that he expected talks with the International Monetary Fund on a $4.8 billion loan to resume in January. As the bank introduces regular currency auctions, the price of the Egyptian pound will begin to reflect supply and demand more closely. It has imposed limits and fees on foreign currency purchases to deter such transactions in the short term. Pharos Research forecast a free float with the pound weakening to 6.50 to the dollar.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Egypt pound hits record low

Monday, December 31, 2012 - 01:13

Editors' Picks »

Most Popular »

Business »

Moving Pictures »

Images of October Images of October

Mon, 03 Nov, 2014 - (0:57)

The world in a city The world in a city

Fri, 31 Oct, 2014 - (1:30)

Real-life superheroes Real-life superheroes

Tue, 28 Oct, 2014 - (1:44)

Dance of the northern lights Dance of the northern lights

Mon, 20 Oct, 2014 - (1:08)

Images of September Images of September

Thu, 02 Oct, 2014 - (1:00)

Still missing – MH370 Still missing – MH370

Fri, 05 Sep, 2014 - (2:05)

Burning Together Burning Together

Mon, 01 Sep, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, 22 Aug, 2014 - (3:12)

Images of August Images of August

Fri, 29 Aug, 2014 - (1:00)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, 11 Aug, 2014 - (2:27)

Oddly Enough »

Thailand hosts the largest gathering of Santa's Elves Thailand hosts the largest gathering of...

Tue, 25 Nov, 2014 - (0:54)

Yellow-spotted turtles rescued from trafficking Yellow-spotted turtles rescued from...

Mon, 24 Nov, 2014 - (0:44)

Vintage cars roll through Pakistan Vintage cars roll through Pakistan

Mon, 24 Nov, 2014 - (1:22)

Birds around the world take flight Birds around the world take flight

Sat, 22 Nov, 2014 - (2:00)

Calling all men: here's your chance to experience labor pains Calling all men: here's your chance to...

Thu, 20 Nov, 2014 - (1:43)

Annie Leibovitz showcases historic "Pilgrimage" Annie Leibovitz showcases historic...

Thu, 20 Nov, 2014 - (1:38)

Block-long billboard lights up Times Square Block-long billboard lights up Times Square

Wed, 19 Nov, 2014 - (1:19)

Japan’s military gets sexy Japan’s military gets sexy

Tue, 18 Nov, 2014 - (1:30)

Reuters Investigates »

Where the sea is closing in Where the sea is closing in

Thu, 20 Nov, 2014 - (3:41)

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, 19 Feb, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, 10 Jan, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, 29 Aug, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, 29 Aug, 2013 - (13:22)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, 05 Aug, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, 17 Dec, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sun, 09 Dec, 2012 - (10:02)