Egypt secures extra $5 bn in IMF loans as pound plunges

Egypt secures extra $5 bn in IMF loans as pound plunges

Egypt secured an additional $5 billion in IMF loans on Wednesday, the two sides said, after the central bank hiked interest rates and allowed the pound to plunge by nearly 40 percent.The Central Bank of Egypt's decision to raise the key deposit rate to a record 27.25 percent, in a move it said was to "fast-track the disinflation path", caught the market by surprise.The bank also committed to "allowing the exchange rate to be determined by market forces", saying in a statement that it was "crucial" to unify the official and black-market exchange rates. Egypt secures extra $5 bn in IMF loans as pound plunges