Egypt Secures IMF Deal to Boost Economic Recovery

Egypt has reached a deal with the International Monetary Fund to increase a bailout loan to $8 billion, enabling the government to receive loans from other financial institutions, including the World Bank.

The deal follows Egypt’s Central Bank raising its main interest rate and floating the currency, which has been among the key demands of the IMF to combat inflationary waves and attract foreign investment.

The pound began floating and lost over 60% of its value against the dollar, leading to commercial banks trading the U.S. currency at over 50 pounds for $1. The Egyptian economy has been hit hard by years of government austerity, the coronavirus pandemic, the fallout from the war in Ukraine, and the Israel-Hamas war in Gaza.