Egypt has successfully implemented a flexible exchange rate system, the International Monetary Fund’s (IMF) managing director Kristalina Georgieva said Sunday, praising the efforts of the Central Bank of Egypt (CBE).
Georgieva said Egypt has made “successful progress” on the flexible exchange rate system in a joint press conference with Prime Minister Mostafa Madbouly.
“Egypt has successfully implemented a flexible exchange rate system,” Georgieva said.
The IMF has increased the size of its program with Egypt from $3 billion to $8 billion in April, she said. The decision recognises the increasing challenges and difficulties facing the country due to global circumstances, she said.
Georgieva also praised Egypt’s commitment to strengthening its economic resilience, citing the successful increase in private sector participation as a driver of growth and job creation. She commended Egypt’s efforts to strengthen social protection through the gradual phasing out of government subsidies and providing targeted support to those in need.
“We have seen positive results from these reforms,” Georgieva said. “We are confident that Egypt will continue to see a dynamic and prosperous economy as a result of these reforms.”
She said the IMF is committed to working with the Egyptian government to find the best path forward to maintain the positive impact of reforms on the Egyptian economy and support growth and development.
Georgieva said the IMF has recognised the increasing challenges facing Egypt, including the need for flexibility and adaptability in the changing global landscape, and the need to seize opportunities to benefit the Egyptian people.
She also stressed the importance of a three-pronged approach to achieving further economic success: ensuring macroeconomic stability, promoting private sector growth, and fostering a green economy.
Madbouly said the fourth review of Egypt’s program with the IMF will begin on Tuesday. The IMF team will work closely with officials from the CBE and relevant ministries.
Madbouly thanked Georgieva for her visit and expressed optimism for continued successful collaborations between Egypt and the IMF. He highlighted the fruitful partnership between the two organisations.
Earlier on Sunday, President Abdel Fattah Al-Sisi met with Georgieva and her delegation. He emphasised Egypt’s commitment to completing the reform program with the IMF and building upon its successes to further enhance economic stability and reduce inflation.
Georgieva said she appreciates Egypt’s efforts in implementing the reform program. She noted that Egypt is making progress in key economic indicators despite unprecedented global challenges.
