The Egyptian government has reached a tentative deal with the IMF that will be announced soon, contingent on a devaluation of the Egyptian pound, according to governmental sources who spoke to Daily News Egypt. The sources said that the two parties agreed to adopt a managed float system, rather than a full-fledged flotation of the Egyptian pound. In contrast, the official market rate is EGP 30.9 and has been unchanged for about a year. The sources indicated that the exchange rate adjustment could happen within hours or days and that an agreement with the IMF to expand the existing extended fund facility program would be announced next week if it is implemented. This was in line with HSBC’s estimates that the loan could be increased by up to $8 billion.

Source: Daily News Egypt January 31, 2024 20:47 UTC