Egypt's pound plunges to historic low with IMF deal
Egypt has agreed to allow its currency to float in order to receive $3 billion from the International Monetary Fund.
The Egyptian pound dropped to another record low on Wednesday as the country moves forward with an International Monetary Fund deal.
The currency traded at more than 30 pounds to the dollar Wednesday before dropping back to around 27, according to the currency website Xe.
Egypt’s Banque Misr sold and bought the dollar at 30 pounds Wednesday. The National Bank of Egypt bought the dollar at 29.25 Egyptian pounds and sold it at 30 pounds the same day, according to the state-owned Al-Ahram news outlet.
Why it matters: The 30-pound figure is an all-time low for the currency, and the devaluation is occurring amid a litany of other economic problems in Egypt. Inflation continues to rise, with Egypt’s annual headline inflation hitting 21.9% in December.
