Egypt's central bank weakens pound at auction as foreign currency reserves continue dropping

CAIRO – Egypt's state-run news agency says the central bank has weakened the value of the Egyptian pound.

The MENA news agency cites traders as saying the central bank weakened the pound in an auction Thursday by 10 piasters, from7.73 per dollar to 7.83.

Egypt's foreign currency reserves fell 9.7 percent in September to $16.3 billion, the third consecutive monthly drop, the central bank said last week.

Economists say the drop in foreign currency reserves since the 2011 uprising that toppled President Hosni Mubarak was putting pressure on authorities to devalue the currency. The drop in reserves comes despite billions of dollars in aid and loans since 2011 from Gulf Arab nations.

Years of unrest have taken a heavy toll on Egypt's vital tourism sector and its investment climate.