Egypt has officially requested support from the International Monetary Fund (IMF) to implement a comprehensive economic program, the fund said on Wednesday.
Celine Allard, IMF mission chief for Egypt said in a statement that the rapidly changing global environment and spillovers related to the war in Ukraine are posing important challenges for countries around the world, including Egypt.
She added that a set of macroeconomic and structural policy measures would mitigate the impact of this shock on the Egyptian economy, protect the vulnerable, and preserve Egypt’s resilience and medium-term growth prospects
To this end, the authorities’ recent actions to expand targeted social protection and implement exchange rate flexibility are welcome steps.
The IMF indicated that continued exchange rate flexibility will be essential to absorb external shocks and safeguard financial buffers during this uncertain time . Prudent fiscal and monetary policies will also be needed to preserve macroeconomic stability.
“Staff is working closely with the authorities to prepare for program discussions with a view to supporting our shared goals of economic stability and sustainable, job-rich, and inclusive medium-term growth for Egypt.”
