Egyptian Central Bank Floats National Currency

The move has already reportedly devalued Egypt's national currency up to 50 percent. Cairo seeks to jump-start the market.

MOSCOW (Sputnik) — The Central Bank of Egypt (CBE) on Thursday introduced a nonbinding exchange rate of currency to enhance the level of foreign currency liquidity in the national economy, the CBE's press service said in a press release.

"The CBE has announced a nonbinding foreign exchange rate which is to serve as soft guidance to jump-start the market. The new regime will improve Egypt’s competitiveness and allow for the deepening of foreign currency liquidity while streamlining activity into the formal channels. Such activity will allow for the steady accumulation of foreign currency reserves through channels which include but are not limited to the increase of private transfers, trade competitiveness, and foreign investments," the statement said.

The statement added that following the CBE's decision, all the market participants were allowed to trade at any exchange rate, which was expected to be regulated only by demand and supply.

According to local media, the move has already devalued the national currency up to 50 percent.