Egypt holds forex auction to clear ‘food backlogs’

May 15, 2014 2:04 am

Egypt’s central bank has offered $1.1bn in an exceptional foreign currency auction yesterday to allow banks to meet demand for hard currency needed to pay for food imports, Reuters has reported. “This auction is intended to cover and clear all pending food backlogs to secure availability of staple food commodities over the coming period,” the central bank said. Egypt has been suffering from a sustained dollar shortage as political turmoil following the 2011 uprising against veteran leader Hosni Mubarak unnerved foreign investors and tourists, traditionally major sources of foreign currency.