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UPDATE 1-Egypt scraps customs exchange rate as of Sept. 1

(Adds finance ministry statement)

CAIRO, Sept 1 (Reuters) - Egypt on Sunday cancelled a monthly customs exchange rate that it introduced in January 2017 following the flotation of the pound currency in November 2016, and will once again set the rate daily, the finance ministry said in a statement.

Egypt had set the customs exchange rate at 16 Egyptian pounds to the dollar for essential items and at a fluctuating rate adjusted monthly for non-essential goods.

"As of Sept. 1, the customs duties on imports of all kinds will be estimated according to the foreign currencies exchange rates announced by the central bank", the finance ministry said on Sunday.

The cancellation of the customs exchange rate is due to "the disappearance of the exceptional circumstances" that led the government to apply it, the ministry added

"Now, the foreign currencies exchange rates announced by the central banks have stabilized, and have converged with the customs dollar rate."

The customs duties will be estimated on the rate of 16.6230 Egyptian pounds to the one dollar on Monday, a bulletin issued by the Customs Authority said on Sunday. (Reporting by Ehab Farouk, Writing by Patrick Werr and Mahmoud Mourad, Editing by Alison Williams)