Egypt severely weakened the exchange rate of its national currency, allowing it to fall to record lows against the dollar. writes about this Reuters.
According to the publication, this step was taken as part of negotiations with the International Monetary Fund to expand the country’s loan assistance program.
After the start of trading, the Egyptian pound fell from 30.85 to over 50 units per US dollar; This was a level that officials had long tried to defend. Greater exchange rate flexibility is one of the IMF’s key requirements for signing a new agreement on a $3 billion loan program that includes the possibility of expansion, the publication says.
“The Central Bank of Egypt said its actions were “backed by the continued support of multilateral and bilateral partners” and that “sufficient financing has been provided to ensure foreign exchange liquidity,” the agency said.
According to media reports, after the devaluation was announced, the value of Egyptian euro bonds increased and the spread between US government bonds narrowed to 529 basis points, its lowest level since June 2021.
As analysts noted, the steps taken by Cairo paved the way for reaching an agreement with the IMF. An unnamed senior official told Al Qahera News that the agreement would be signed “within a few hours”.
The day before the price of the Turkish lira updated historical low.
Bitcoin for the first time before punched 69 thousand dollars.