Egypt's deficit widening, currency falls further

Egypt's budget deficit in the year to end-June 2013 is expected to widen to 200 billion Egyptian pounds ($31.5 billion), against a budgeted deficit of 135 billion pounds, Planning Minister Ashraf al-Araby said on Monday. The country's 2011/12 deficit was 166.7 billion pounds. Egypt's pound fell a further 2% at the central bank's second auction of foreign currency under its new regime, with $74.8 million sold to banks at a cut-off price of 6.3050 Egyptian pounds. Egypt's president said the weakening pound could stabilize within days under a new regime implemented to fend off financial ruin and safeguard reserves needed to ensure food and fuel imports in a political crisis.