The World Bank and United States Secretary of State John Kerry praised Egypt for its decision to float the pound last week, while the move has been met with mixed feelings from Egyptian parliamentarians. “Liberalizing its foreign exchange system and reducing costly fuel subsidies demonstrates a determination to put the country on the path to economic recovery,” Kerry said in a statement published on the State Department website on Saturday. “The task before them is a challenging one, but it is encouraging that Egyptian leaders are making the difficult decisions needed to move their country towards prosperity.” The World Bank also released a statement in support of the flotation, saying it will “boost the competitiveness of Egyptian businesses, support export growth, attract new foreign investment, free public resources for priority growth and social programs, and support incomes for the poor and the vulnerable.” Egypt’s central bank floated the local currency in a surprise move early on Thursday, “moving to a liberalized exchange rate regime in order to quell any distortions in the domestic foreign currency market.” Egypt has been waiting for the International Monetary Fund (IMF) to give its final approval to…
