Egypt Implements Drastic Economic Reforms to Secure IMF Support and Attract Foreign Investment

• Egypt floated its currency and let it be determined by market forces rather than government policies • Egypt made a deal with the IMF to increase its bailout loan from $3 billion to $8 billion • Egypt raised its key interest rate by 600 basis points to 27.75% to combat high inflation • The measures are meant to attract foreign investment and end the black market for foreign currencies • Egypt secured $35 billion from a development deal to help fund the currency reforms