The currency move, though, is seen as a net positive for the Egyptian economy in the long-run. The International Monetary Fund welcomed the flexible exchange rate, arguing that the new system will inject more money into the economy, attract foreign investment and support tourism and exports, Bloomberg reports.

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Moreover, the reforms may help the country move toward securing a much needed IMF bailout.

Egypt has struggled to support an ailing economy since the 2011 uprising that ousted Hosni Mubarak.

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VanEck Vectors Egypt Index ETF