Egypt Secures Expanded $8 Billion IMF Deal Amid Economic Reforms

The agreement, aimed at stabilizing the economy, includes a significant interest rate hike and the flotation of the Egyptian pound.

Egypt has signed an expanded $8 billion deal with the International Monetary Fund, building on a previous $3 billion agreement.
The deal follows Egypt's decision to let the Egyptian pound trade freely and to hike interest rates by 600 basis points.
The agreement includes a $1.2 billion loan for environmental sustainability and comes after a $35 billion investment deal with the Emirati sovereign wealth fund ADQ.
Economic challenges including government austerity, the COVID-19 pandemic, and regional conflicts have significantly impacted Egypt's economy.
The Egyptian pound has lost about 50% of its value against the US dollar since January 2022, with nearly 30% of Egyptians living in poverty.