Egypt floated its currency on Thursday and said it would make a final push to secure a $12 billion IMF loan within days as it seeks to overhaul its dollar-starved economy and unlock foreign investment… From Sunday, the rate will be determined not by the central bank but by banks trading via the interbank system, with Central Bank Governor Tarek Amer telling a news conference there would be “no going back”.
Egypt’s dollar bonds rallied across the curve on the float, which came as soaring inflation and sugar shortages had threatened to trigger social unrest. Egypt’s stock index also surged, initially rising 8.3 percent, on the news.
Bankers and economists said the float would help restore investor confidence after the 2011 revolt ushered in a period of political upheaval that drove off tourism and foreign investment – vital sources of hard currency.”