Egyptian Finance Minister Amr El-Garhy said Friday that having two exchange rates, an official rate and a rate on the parallel market, had hindered direct investment in the country, in statements justifying Thursday's flotation of the pound.

The pound was floated by the central bank on Thursday and interest rates were raised; the petroleum ministry also increased the prices of subsidised petrol and gas by increments of between 30 and 50 percent.

El-Garhy, speaking to media at a press conference, also said that increasing the prices of subsidised energy would decrease pressure on the state budget.