Dollar price: Is floating the pound in Egypt considered a solution to the financial crisis or a prelude to new loans?

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“I, as a citizen, cannot live,” this is how young Ahmed Mohamed feels, hours after the Central Bank of Egypt decided to reduce the value of the Egyptian pound by nearly 40 percent against the US dollar.

The decision, which was followed by the announcement of an agreement with the International Monetary Fund to lend Egypt $8 billion, which economists see as the ideal solution to the Egyptian economic crisis, some fear will increase the burden on Egyptians who have already been suffering from the weight of high prices and the high cost of living for years.

Egyptians woke up on Wednesday morning to several decisions by the Central Bank, which included raising the interest rate on loans and savings by six percent, lifting restrictions on the use of credit cards in foreign currency, in addition to moving the exchange rate of the pound.

Egyptians have been cautiously awaiting these steps for months, especially their expected impact on commodity prices.

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