The International Monetary Fund (IMF) approved in December 2022, a 46-month arrangement under the Extended Fund Facility (EFF) for Egypt to receive a loan of $3bn, with the agreement expected to draw in an additional $14bn in financing for the country. According to a report published by the IMF on Tuesday, Egypt will receive the second tranche of the loan next March. Inflation, anchored by data-dependent monetary policy, is expected to converge back to around 7 percent by FY2024/25. “Monetary policy would continue to be data dependent, firmly anchored to the CBE’s price stability mandate,” according to the fund. “While economic recovery gained momentum during FY2021/22, imbalances also started building amidst a stable exchange rate,” according to the IMF.
