No one at the central bank was available for comment when contacted by Bloomberg News. Ramez said on a call with investors and analysts Jan. 9, one day before he was chosen to take over as governor, that he doesn’t expect the pound to weaken beyond about 6.7 a dollar by the end of March, according to three people who were on the call.
Three-month non-deliverable forwards advanced 1.4% to 7.3 a dollar today, reflecting investor expectations for the currency to drop another 8.2% in the period, according to data compiled by Bloomberg. Twelve-month forwards gained 0.6% to 7.95 a dollar.
“For foreign investors, it’s a bad move,” Simond said, referring to the regulations. “We’ve been saying the pound is overvalued for quite sometime so the quicker you get to fair value the better.”
Egypt raised 1.5 billion pounds at an auction of five-year and seven-year treasury bonds today, according to data posted on the Finance Ministry website. The average yield on five-year notes climbed 61 basis points, or 0.61 of a percentage point, from the last sale in December to 14.79%. The seven-year yield soared one percentage point to 15.18%. Both rates are the highest since October.
The government’s 5.75% dollar bonds due in 2020 slumped for an seventh day, pushing the yield seven basis points higher to 6.64%. That’s an increase of 108 basis points since a surge in violence between protesters and police that started Jan. 25, the second anniversary of the start of the anti-Mubarak uprising.