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Sunday, 8 May 2016

CBE continues crackdown on FX bureaus, considers gradual punishment approach

The CBE continued its crackdown on FX bureaus it accused of being deeply involved in the parallel market, bringing the number of shuttered exchanges to 16, including El Maady Exchange, which was shut down last Thursday. Sources at the Central Bank tell Al Masry Al Youm that the CBE is considering imposing a system of escalating punishment for violators, including a one- to three-month suspension for first infractions. The EGP strengthened to EGP 10.95 to USD 1 in the parallel market yesterday, with FX dealers telling Al Mal that this may be due to a winding-down of import activity after securing supplies for Ramadan. Demand for hard currency in Egypt typically spikes in the run-up to Ramadan and again in during back-to-school season.

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