Egypt devalues, floats its currency, meeting key IMF demand

Egypt devalued its currency by 48% on Thursday and announced the pound would be allowed to float - measures that meet a key demand by the International Monetary Fund in exchange for a $12bn loan over three years to overhaul the country's ailing economy.

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

A Central Bank auction for about $4bn was held later on Thursday, allowing supply and demand to determine the value of the pound for the first time.