Egypt Unlocks $8 Billion IMF Loan to Ease Crisis With FX Float
- Agreement also follows $35 billion investment by Abu Dhabi
- Central bank allows currency float, tanking pound 38%
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Egypt and the International Monetary Fund agreed to more than double the country’s rescue program to $8 billion, the culmination of recent global efforts to stabilize the cash-strapped regional linchpin squeezed by wars and inflation.
The announcement followed swift moves earlier Wednesday to float the currency — tanking the pound as much as 38% — and hike interest rates by a record 600 basis points as the country led by President Abdel-Fattah El-Sisi has sought to meet longstanding economic reforms demanded from the IMF and backed by the US.