Egypt agreed with the IMF on an $8 billion support program and let its currency decline sharply. It also announced that it would allow the exchange rate to be determined according to market mechanisms in an attempt to achieve economic stability.
The pound has fallen by more than two-thirds against the dollar since March 2022 during stages of devaluation. The country's external debt repayment schedule is burdening the country, while high interest rates and a weak currency have increased debt servicing costs. Authorities attribute the challenges to external shocks including the COVID-19 pandemic and the war in Ukraine.