Long-waited devaluation arrives, value of Egyptian pound falls to LE45 in hour

Long-waited devaluation arrives, value of Egyptian pound falls to LE45 in hour

After months of speculation, the Egyptian pound was allowed to float on Wednesday morning, with the national currency’s value falling from LE31 to LE45 against the US dollar in the early hours of the day in some banks. The drop comes in parallel with the unprecedented decision by the Central Bank of Egypt’s monetary policy committee on Wednesday to raise the interest rate by 6 percent, which comes “within the […]

The post Long-waited devaluation arrives, value of Egyptian pound falls to LE45 in hour first appeared on Mada Masr.After months of speculation, the Egyptian pound was allowed to float on Wednesday morning, with the national currency’s value falling from LE31 to LE45 against the US dollar in the early hours of the day in some banks.

The drop comes in parallel with the unprecedented decision by the Central Bank of Egypt’s monetary policy committee on Wednesday to raise the interest rate by 6 percent, which comes “within the framework of a comprehensive economic reforms package” that also includes liberalization of the exchange rate, according to a statement published by the bank.

Raising the interest rate in this manner is the central bank’s way of maintaining citizen and investor confidence in the Egyptian