Egyptian MPC raises rates and devalues currency
Moves after UAE's $35 billion investment make IMF deal more likely
The Central Bank of Egypt has raised its two benchmark rates to their highest-ever levels and devalued the currency.
In an unscheduled meeting today (March 6), the bank’s monetary policy committee raised its key overnight deposit rate by 600 basis points to 27.25%. It also increased the overnight lending rate by the same amount to 28.25%.
Shortly afterwards, the bank sharply devalued the currency, lowering its official exchange rate against the dollar by 35%. Having started the day at E£30.9
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