Egypt's central bank has implemented a significant interest rate hike of 6% to combat inflation and stabilize the economy.

The interest rate increase has resulted in the Egyptian pound's value falling by nearly 50% compared to the US dollar.

The central bank's goal is to unify the exchange rate and rein in inflation as part of a comprehensive economic reform plan.

The move to raise interest rates is designed to lay the foundation for economic stability and to curb inflation over the medium term.

Egypt is shifting towards a more flexible exchange rate system and is using Gulf investments to support the pound and prevent further devaluation.

Following the central bank's decisive actions, there has been a positive reaction in the international bond market, suggesting investor confidence.