Egypt secures extra $5 bn in IMF loans as pound plunges

The Central Bank of Egypt's decision to raise the key deposit rate to a record 27.25 percent, in a move it said was to "fast-track the disinflation path", caught the market by surprise.

The bank also committed to "allowing the exchange rate to be determined by market forces", saying in a statement that it was "crucial" to unify the official and black-market exchange rates.

By the market's close on Wednesday, the pound was trading at a record low of around 50 to the US dollar, after more than a year of a stabilised official exchange rate of around 30.9 against the greenback.

Shoppers in Cairo voiced concern about the move, with one of them, Ezzat Hemaida, saying it "affects us in every way".