Egyptians are forced to confront the harsh reality of a free-floating currency, which will hike the cost of basic goods Egypt’s currency has nosedived since its central bank free floated the pound this month. It lost more than 50% of its value, adding to the burden already felt by Egyptian consumers.The pound was trading at around LE15.50 against the US dollar earlier this week, down from an official rate of LE8.88 earlier this month. The devaluation paves the way for a US$12bn loan from the International Monetary Fund ($2.75m is already on its way).Early in 2016, Central Bank governor Tarek Amer implemented the biggest devaluation in years, cutting the pound rate by 13%. Even at this level, however, it was far from resembling an accurate market rate, leading the parallel market to thrive.Last week’s decision to devalue the currency was not a standalone measure. It was accompanied by a sudden cut in fuel subsidies that raised the price of petrol and diesel by more than 45% overnight...

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