Egypt Devalues Currency to Get IMF Loan
The International Monetary Fund has officially approved a three-year $12 billion loan to help support the country’s economic reform plan.
Starting this month the government floated the Egyptian pound, and it has now lost 50 percent of its value. From an exchange rate of 8.8 on November 1, the pound has now been devalued to 18.01 against the US dollar.
Their new campaign is being called “A Chance for Change.” Its overall goal is meant to stimulate their economy with a focus on the following key components:
- A flexible exchange rate regime to remove overvaluation, rebuild reserves, and provide buffers for external shocks.
- Monetary tightening to contain inflation.
- Fiscal consolidation to ensure medium-term public debt sustainability.
- Strengthening social safety nets and increasing pro-poor spending to offset impact of the reforms on the vulnerable.
- Structural reforms to promote inclusive growth, create jobs, increase and diversify exports, improve the business environment, and strengthen public finance management.
Since the announcement, a Graphic Designer by the name of Maged Sabry has launched a Facebook page called “Egyptian Currency Design Challenge.”
The page has gone viral with many submitting pictures with fresh designs for a new Egyptian pound. Yet the Central Bank of Egypt has denied rumors that it plans to change the design of Egyptian banknotes.
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