By Aysu Bicer
ANKARA (AA) – The Egyptian pound on Thursday lost over 12%, falling to a record low of 22.4526 against the dollar in offshore trading after the Central Bank said it is opting for a more flexible currency regime.
The country is working to reach an agreement with the International Monetary Fund for a fresh loan.
The Central Bank also hiked official borrowing costs by 200 basis points.
A more flexible exchange rate has been considered a condition for new financing that Egypt started seeking this year from the IMF.
Egypt agreed to a three-year IMF program in late 2016 that included a currency devaluation, sweeping reforms, and a $12 billion loan.