Egyptian Pound Nears 50 per U.S. Dollar Amid Economic Challenges

The Egyptian pound is nearing an exchange rate of 50 per U.S. dollar following recent hikes in subway fares and fuel prices. The Central Bank of Egypt reported the pound at 49.16 to the dollar on Tuesday.

In recent months, the pound fluctuated between 47 and 48 to the dollar. Since its flotation in March, the currency has lost about 60% of its value.

This currency drop comes after the IMF completed its third financial review of Egypt, allowing the government to access $820 million from an $8 billion bailout loan. This support is crucial for Egypt's economy, which faces a foreign currency shortage, high inflation, and instability in the Red Sea due to Houthi rebel attacks.

“The Egyptian authorities’ recent efforts to restore macroeconomic stability have started to yield positive results,” the IMF stated.

Egyptians are grappling with soaring inflation, exacerbated by a recent 10% rise in fuel prices and increased subway fares, which now range between 2 to 5 Egyptian pounds.

These hikes are part of the conditions set by the IMF for further assistance, aiming to stabilize Egypt's economy.