Egypt Free Floats its Currency, Devaluing it Against the Dollar

Egypt Free Floats its Currency, Devaluing it Against the Dollar
"IMF says move will improve Egypt’s external competitiveness, support exports and tourism and attract foreign investment"

"CAIRO—Egypt’s central bank floated its tightly controlled currency Thursday, in a surprise step that aims to draw foreign capital back to the country but risks pushing the price of goods out of reach for ordinary Egyptians.

The Central Bank of Egypt, which also raised interest rates by 3 percentage points, said the decision to “liberate exchange rates” was intended to return foreign-currency trading to the formal banking sector and away from a black market that has capitalized on months of acute dollar shortages."

The move led to a sharp devaluation of the

http://www.wsj.com/articles/egypt-free-floats-its-currency-devaluing-it-...