Egypt devalues currency by 48% to meet IMF loan demand

Egypt has devalued its currency by 48%, meeting a key demand set by the International Monetary Fund in exchange for a 12 billion US dollar (£9.8 billion) loan over three years to overhaul the country's ailing economy.

Thursday's much-heralded decision by the Egyptian Central Bank followed a sharp and sudden decline this week in the value of the dollar in the unofficial market, plunging from an all-time high of 18.25 Egyptian pounds to around 13 to the US currency.

The devaluation pegged the Egyptian pound at 13 to the dollar, up from nearly nine Egyptian pounds on the official market.

The IMF's executive board has yet to ratify the 12 billion US dollar loan provisionally agreed by Egypt and the IMF in August.