Egypt has devalued its currency by 48% and announced that it will be allowed to float – measures that meet a key demand by the International Monetary Fund in order to secure a $12bn (£9.6bn) loan over three years to overhaul its ailing economy. The devaluation pegged the Egyptian pound at 13 to the dollar, up from nearly nine on the official market. A central bank auction of dollars will be held later on Thursday, allowing supply and demand to determine the value of the pound for the first time in decades. The devaluation was virtually certain to cause a steep hike in prices, piling pressure on Abdel Fattah al-Sisi’s government to avoid a popular backlash against its handling of the economy. Sisi has repeatedly urged Egyptians in recent weeks to rally behind him as he grapples with the country’s worst economic crisis in decades, arguing that there was no way out of the economic crisis unless Egyptians “endure and be patient.” Sisi, a general turned president ele...
from GoldBroker.com https://www.goldbroker.com/news/egypt-devalues-currency-by-48-to-meet-imf-demands-for-12bn-loan-1031
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