The Egyptian pound is declining at the fastest pace in 4 months against the dollar

Refinitiv data showed that Egypt devalued its currency by the most in four months against the dollar, as it fell by more than 0.10 pounds to the dollar.

By 1337 GMT, the pound was trading at 19.62 to the dollar, down from 19.49 at the start of trading.

Foreign currency has been scarce in Egypt over the past six months, forcing banks and importers to race for dollars to pay for imports.

This put pressure on the central bank to allow the value of the pound to decline.

The dollar also disappeared for reasons including the high cost of importing basic commodities, the decline in the number of Russian and Ukrainian tourists, and the dollar's exit from the Egyptian treasury bond markets.

The last time that the Central Bank allowed the pound to decline at such a rapid pace was in the period from 22 to 25 May, when it fell by 0.34 pounds against the dollar in the three days.

The pound reached a record low on December 21, 2016 when it was trading at 19.80 to the dollar, according to Refinitiv data.

But the pound recovered in the following years.

Egypt has been negotiating a financial aid package from the International Monetary Fund since March to help it shore up its finances.

The IMF has long been urging to allow more exchange rate flexibility.

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