Egypt floats its currency and agrees with the IMF to increase a bailout loan to $8 billion

By SAMY MAGDY
Associated Press

CAIRO (AP) — Egypt has floated its currency and announced a deal with the International Monetary Fund to increase its bailout loan to $8 billion. The moves are aimed at shoring up an economy hit by a staggering shortage of foreign currency and soaring inflation. The flotation of the Egyptian pound combined with a sharp raise of the main interest rate is meant to combat inflationary waves and attract foreign investment. The measures were announced by the Central Bank of Egypt early Wednesday. They have been among the key demands of the IMF to increase its $3 billion bailout loan that both parties agreed to in 2022. The central bank increased the key interest rate by 600 basis points to 27.75%.