Egypt's Ezz Steel says output hit by forex shortages

Net sales fell to 4.8 billion pounds from 5.3 billion in the same period last year.

"Ezz Steel was not able to source sufficient foreign currency, due to a major change in the regulations of the banking sector," said Paul Chekaiban, chairman and managing director.

"As a consequence we had to limit imports of raw materials and to reduce the volume of our production and sales which has negatively impacted margins and the bottom line," he said.

The central bank cracked down on the country's foreign exchangebnlack market earlier this year in the hope of persuading foreign investors that the economy has returned to normal after four years of turmoil.

But Egyptian importers and exporters say official measures to cap dollar deposits at Egyptian banks have reduced foreign exchange liquidity and stifled business activity while failing to achieve long-term stability in the currency market.