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Egypt's pound sinks against dollar amid economic chaos

Egypt slumps further into economic crisis as pound sinks against dollar
Economy
1 min read
The value of the Egyptian pound sunk further against the dollar over the weekend, plunging the already crisis-hit north African country into economic chaos.
The Egyptian economy has been hit hard by the Covid-19 pandemic and the recent Ukrainian-Russian war [source: Getty]

Egypt's pound fell about 4 percent to 24 against the dollar as trading resumed on Sunday after the weekend, Refinitiv data showed.

The pound had slid about 14.5 percent against the dollar on Thursday after authorities announced a commitment to a "durably flexible" exchange rate regime along with a preliminary agreement for a $3 billion loan from the International Monetary Fund.

MENA
Live Story

The Central Bank of Egypt on Thursday implemented exchange rate flexibility, allowing the value of the Egyptian pound to be regulated by market forces in a bid to save an already ailing economy.

Following the controversial decision, the local currency dropped in value against the US dollar, following a 15 percent spike in the inflation rate, the highest in four years amid growing economic hardships, and the second floating in 2022.

Dozens have been detained following calls for mass protests against the government's economic mismanagement.