Dollar jumps 138% against Egypt pound since 2011 revolt after float move

As Egypt’s central bank announced Thursday it floated the Egyptian pound, experts estimated that dollar has climbed 138 percent against the Egyptian currency since the outbreak of January 25, 2011 Revolution.

Dollar was sold for 5.88 pounds in January 2011, compared to around 14 pounds on November 3rd, 2015.

The Central Bank of Egypt (CBE) decided earlier on Thursday to freely float the pound and raise key interest rates as part of a set of reforms aimed at alleviating a dollar shortage, eradicating the black market and stabilising the country’s flagging economy.

According to the CBE, the overnight deposit rate, the overnight lending rate and the rate of the CBE’s main operation have been raised to 14.75 percent, 15.75 percent and 15.25 percent respectively.

Following the CBE’s historic step, the dollar’s rate has declined in the parallel market to register around 12.90 pounds, according traders.