The currency dropped a third of its value after the decision to unpeg it from the 8.8 Egyptian pound per Dollar put in place in March. It has since dropped by more than 50 percent.
Stock in the country reacted by jumping to an eight year all-time high as investors moved swiftly in anticipation of Egypt securing a $12 billion loan from the International Monetary Fund (IMF) to boost its languishing economy.
Egypt is yet to recover from the Arab Spring which ended in January 2011 and left its economy battered - something the North African country is trying to combat by boosting investor confidence.
“We have been expecting this for a long time and it is very positive. We expect a lot of interest in Egypt, it’s a massive economy that has been put on hold for year,” Bloombergquoted Rami Sidani, head of frontier investments at Schroders Plc on phone.
Egyptian President Abdel Fattah al-Sisi is also spearheading an austerity plan to cut government spending as part of the conditions for the IMF's loan.
The currency float will also boost Egypt's foreign reserves, months after a dollar shortage hit the country. As at September 2016, Egypt's foreign reserves stood at $19.6 billion, less than half the amount reported in early 2011, according to Middle East Eye.
The Egyptian central bank will also increase interest rates by at least 300 basis points to 14.75 percent as it tries to curb inflation. Egypt currently has an inflation rate of about 14 percent, the highest in seven years. SHARE YOUR STORY WITH US VIA EMAIL: INFO@247NIGERIANEWSUPDATE.CO RECEIVE NEWS VIA OUR WHATSAPP, KINDLY TEXT +234 701 056 0394 TO ADD YOU CLICK HERE TO JOIN US ON OUR YOUTUBE CHANNEL FOR NEWS UPDATE CLICK HERE TO JOIN US ON TWITTER FOR INSTANT NEWS UPDATE: @247NGNEWSUPDATE CLICK HERE TO JOIN MILLIONS AROUND THE GLOBE TO READ NEWS ON OUR FACEBOOK FAN PAGE FOR INSTANT UPDATES ON INSTAGRAM CLICK HERE RECEIVE INSTANT NEWS UPDATE VIA OUR BBM BROADCAST: D3EDEFDF PLACE YOUR TEXT ADVERT BELOW:>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>