The International Monetary Fund (IMF) mission chief for Egypt, Chris Jarvis, commented on the Central Bank of Egypt’s (CBE) decision to float the Egyptian pound on Thursday.

“We welcome the CBE’s decision to liberalise the foreign exchange system and adopt a flexible exchange rate regime. Under the new system, the exchange rate will be one where people are prepared to sell foreign exchange as well as to buy it. This will make more foreign exchange available,” said Jarvis.

He continued: “The flexible exchange rate regime, where the exchange rate is determined by market forces, will improve Egypt’s external competitiveness, support exports and tourism, and attract foreign investment. All of this will help foster growth, job creation, and stronger external position for the country.”

Egypt recently agreed upon a $12bn loan with the IMF for a three-year period. The loan is expected to be fully approved by the end of November.

Several conditions have been tied to the agreement on the loan as part of Egypt’s economic reform programme. The flotation of the Egyptian pound is viewed as part of the measures needed to fulfill promises made to the IMF.