Egypt says it is close to finalizing an agreement with the International Monetary Fund for a three-year support program with the aim of securing funding worth $7bn a year, according to Financial Times.

The announcement comes as the Egyptian pound reached a record low against the dollar on the black market this week. It has been selling for a 45 per cent premium over the official rate.

The country has been in the grip of a severe foreign currency shortage since the beginning of the year.

This was mainly because of damage to the tourism industry after a terrorist bomb brought down a Russian airliner shortly after takeoff from an Egyptian airport.