Egypt Pound Dives After Shift to Flexible Currency, IMF Deal
- Pound seen as too expensive amid the dollar’s relentless rise
- Egypt agrees to $3 billion IMF deal, gets other pledges of aid
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Egypt’s pound plunged after the central bank said it was moving to a more flexible currency regime in an overhaul of policies that helped the government secure a deal with the International Monetary Fund.
The pound depreciated 15% to a record low of 23.09 against the dollar in offshore trading, surpassing the magnitude of its devaluation on March 21, according to data compiled by Bloomberg. The central bank also raised official borrowing costs by 200 basis points.