Egyptian pound hits record low against US dollar

The value of Egypt's currency plummeted to a record low against the US dollar on Wednesday as the country continues to battle surging inflation. Decisions in recent months by the country’s Central Bank to raise the main interest rate and devalue the Egyptian pound have set off an economic shock that has affected millions of residents.

The measures were meant to fight increasing prices and meet the requirements of the International Monetary Fund for a bailout loan amid a shortage of foreign currency. Last month, the Central Bank announced it aims to bring down inflation to about 7% by the fourth quarter of 2024.

The higher inflation has inflicted heavy burdens on consumers, especially lower-income households. The IMF approved the $3 billion support package for Egypt after a series of reforms, including the currency devaluation that saw the pound lose more than 40% of its value against the dollar since March 2022.