Egypt and the International Monetary Fund (IMF) are nearing completion of the first and second reviews of the country’s $3 billion loan program, with the possibility of a “mega-sized” increase in funding. Egypt’s initial agreement with the IMF involved a $3bn loan, but only a first instalment of $350m was disbursed. The IMF stipulated reforms including exchange rate flexibility and divestment program progress before further disbursements. However, she stressed the need for addressing inflation and achieving a flexible Egyptian pound exchange rate to absorb shocks. In a separate interview with Al Arabiya Business, Georgieva declared the multiple Egyptian pound exchange rates as “disastrous,” advocating for a unified rate determined by the official market.

Source: Daily News Egypt February 12, 2024 17:45 UTC