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Egypt gets lifeline after IMF signs deal for $8bln loan
The IMF has finally signed a deal to approve a $8 billion lifeline to Egypt, after the country devalued its currency on Wednesday morning. The devaluation followed in the wake of a huge interest rate hike of 600 bps by the central bank. After an exceptional meeting on Wednesday morning, the Central Bank of Egypt (CBE) announced that that it will leave the foreign exchange rate to the forces of supply and demand in the market, allowing the local currency to depreciate against foreign currencies. The Egyptian pound has weakened to around 50.35 against the US dollar as of 2:45pm, according to data from the London Stock ... (full story)