Egypt allows its currency to float freely Thursday Nov 03,2016

Egypt has floated its currency in a move that has reduced its value by almost 50% against the dollar.

One US dollar is buying around 14 Egyptian pounds, up from the nine Egyptian pounds the central bank was trying to keep it at.

The country's central bank said the move was one of a list of reforms designed to strengthen confidence in the economy.

Egypt's main stock index jumped by more than 8% on Thursday Nov 03,2016

The central bank has also increased interest rates by 3 percentage points to 14.75%.

The move is a key requirement of the International Monetary Fund (IMF), from which Egypt is asking for a $12bn loan over three years.

The IMF's mission chief for Egypt, Chris Jarvis, said the move would make more foreign exchange available and would "help foster growth, job creation and stronger external position for the country".