The Egyptian pound is trading in banks at around 16 to the dollar, down from the 13-pound peg the Central Bank set as a guiding exchange rate when it floated the currency last week.

Banks were selling the U.S. currency at 16 pounds while buying it at around 15.5 pounds on Sunday, the first full business day in Egypt since the Central Bank floated the currency on Thursday. The pound was trading in banks at 8.8 pounds prior to the floatation.

The floatation was followed just hours later with a hike in the price of fuel, measures that met key demands set by the International Monetary Fund in exchange for a $12 billion dollar loan to overhaul Egypt's ailing economy.

The IMF's executive board has yet to ratify the loan.