The Central Bank of Egypt (CBE) said it would float the EGP at an exceptional FX auction to be held today at 1:00pm local time and raise key lending rate by 300 bps, according to a statement from the CBE. The CBE will hold multiple-price FX auctions when necessary, and the rate will be determined by Supply and Demand via interbank market. CBE “announces its decision to move, with immediate effect, to a liberalized exchange rate regime in order to quell any distortions in the domestic foreign currency market.” It will “gradually phase out budget monetary financing.” There are no restrictions to FX deposits and withdrawals, the priority import list is abolished, and non-essential goods importers are subject to FX limits. At the time of writing, the EGP weakens to USD-EGP13.255 at the National Bank of Egypt (NBE) from USD-EGP8.88 previously, NBE and Banque Misr issue 18-month 20% and three-year 16% certificates of deposit, and 12M NDF weakens to record USD-EGP16.6758. (Bloomberg)