Cairo, Nov 3 (IANS) The Egyptian central bank on Thursday devalued the country's currency by 48 per cent against the US dollar and raised interest rates by 3 per cent.

The official exchange rate of the Egyptian pound will now be 13 to the US dollar, down from 8.8, Xinhua news agency reported.

The currency will be allowed to fluctuate in value by 10 per cent for a short period before it is set, the central bank said in a statement.

The bank had also raised deposit and lending interest rates by 3 per cent.

The official exchange rate for the Egyptian pound has been steady at 8.8 to the US dollar since March, but the currency kept tumbling on the black market, to as low as 18 against the dollar.