Abdalla stated that the IMF deal will undoubtedly help Egypt restore macroeconomic stability and enhance its ability to absorb external shocks
Egypt and the International Monetary Fund (IMF), after several fruitful discussions, have agreed on an integrated package of policies, measures, as well as economic and structural reforms that align with the national reform program, explained acting governor to the Central Bank of Egypt (CBE) Hassan Abdalla.
Announced earlier today, the finalized agreement sees Egypt receiving $3 billion in funding that will run for over 46 months (4 years).
Abdalla stated that the IMF deal will undoubtedly help Egypt restore macroeconomic stability and enhance its ability to absorb external shocks, that have recently increased at the global level.
Speaking to media at a press conference with the IMF held on the Cabinet’s premises, Abdalla explained that the CBE is moving to improve and enhance the efficiency of monetary policy and exchange rate market performance.
The CBE's goal is to double the reserves during this period, he added.
Earlier today, the CBE announced that it was implementing a durably flexible exchange rate regime, leaving the forces of supply and demand to determine the value of EGP against other foreign currencies.
That announcement was revealed alongside the raising of key interest rates by the Monetary Policy Committee in an unscheduled meeting.
The central bank is targeting the gradual buildup of foreign reserves, Abdalla noted, adding that a program has been devised after having made sure of bridging the financing gap for the next four years.
Imports of goods worth up to $500,000, instead of $5,000 will be exempted from the requirement to open Letters of Credit (L/C), he noted.
