BREAKING: CBE floats Egyptian pound against dollar at 13.5

Central Bank of Egypt (CBE) decided Thursday to float the Egyptian pound according to market supply and demand.

The bank also decided to hike interest rates by 300 basis points aiming to rebalancing currency markets.

Unidentified sources in the central bank said it would set an initial rate of 13 pounds to the dollar and allow free bids and offers while the market converges on a real price.

In a statement released this morning, CBE said it would abolish the priority list for imports and phase out monetary financing of the budget deficit over the coming months.

Two days earlier, CBE kept the Egyptian pound at EGP 8.78 against the US dollar in a move to stabilize its value compared to black market rates.