Egypt Free Floats Pound, Raises Lending Rates to Spur Economy
- Government has pledged economic overhaul ahead of assistance
- IMF board to consider $12 billion if Egypt meets conditions
Egypt Allows Currency to Float in Economic Overhaul
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Egypt took the dramatic step of allowing its currency to trade freely as it announced measures to stabilize an economy crippled by a dollar shortage that has raised concern about social unrest.
Stocks jumped the most in eight years and the pound slumped after the central bank’s decisions, which included raising its two benchmark overnight interest rates by three percentage points. They came after months of negotiations with the International Monetary Fund over a $12 billion loan that’s seen as crucial in western capitals to preventing an economic meltdown that could destabilize the most populous Arab country.