Bloomberg’s sources explained that the IMF is looking to see more privatization deals for state assets and genuine flexibility in Egypt’s currency
The International Monetary Fund (IMF)is awaiting to see Egypt carry out more reforms before the first review of its $3 billion rescue program, Bloomberg reported, citing people familiar with the matter.
Bloomberg’s sources explained that the IMF is looking to see more privatization deals for state assets and genuine flexibility in Egypt’s currency.
Last week, during a press conference on the Middle East and Central Asia Regional Economic Outlook report, Jihad Azour, the IMF’s director for the Middle East, North Africa, and Central Asia, shared some insights on the Egyptian economy.
“The flexibility of the exchange rate is the best way for Egypt to protect its economy from external shocks,” said Azour, adding that there is a need to “redesign the role of the state to focus on priority sectors and allow through leveling the playing field, the capacity for the Egyptian private sector to create growth and create more foreign currencies.”
The Egyptian Central Bank Governor, Hassan Abdullah previously stated that the central focus of the Egyptian Central Bank at present is to curb inflation to a range between 5% and 9% by the fourth quarter of 2026. This was during his participation at the annual spring meetings of the International Monetary Fund and the World Bank in Washington.
Azour also stated that “inflation keeps hurting the economic stability and the livelihood of people and this is where it is important to maintain monetary policy that addresses and arrests inflation. And we encourage the authorities to use the monetary policy instruments, especially interest rates.”
Egypt’s annual headline inflation rate increased to 33.9% this month up from 12.1% in March last year, according to the Central Agency for Public Mobilization and Statistics (CAPMAS) figures on Monday last week.
