Egyptian Prime Minister Mostafa Madbouly has assured the public that the country is on the right track in terms of its economic reforms and that the currency will stabilise.
Speaking at a Wednesday press conference at the new administrative capital, Madbouly confirmed that the government’s privatisation program will be announced before the end of the year.
He explained that the International Monetary Fund (IMF) and Fitch Ratings have both recognized Egypt’s success in implementing a flexible exchange rate system, which means that there will be no fixed exchange rate.
Instead, the dollar will fluctuate based on market dynamics, with the Egyptian pound rising and falling naturally in response to supply and demand. He emphasised that this is a healthy development.
The Prime Minister also stressed that the private sector, businesses, and foreign investors are confident that the government is not interfering with the market, fostering trust in the stability of the Egyptian economy. He addressed concerns about the recent increase in the dollar’s exchange rate, stating that fluctuations are to be expected and that the price is likely to drop again.
Regarding the ongoing negotiations with the IMF for the fourth review of Egypt’s economic reform program, Madbouly reassured citizens that the government will not be taking any decisions that would impose additional financial burdens on the population. He confirmed that the IMF understands and shares this perspective.
The review committee began its work on Wednesday and will continue for two weeks. Madbouly highlighted that international institutions recognize Egypt’s commitment to the correct economic path and anticipate the country’s emergence from its economic difficulties as long as it maintains its current course. He acknowledged that external challenges pose the only real threat to progress.
The Prime Minister also revealed that Egypt’s external and total debt has decreased to 89%, and Fitch Ratings has upgraded Egypt’s credit rating, confirming that the country is on the right path with a flexible exchange rate system.
Madbouly further pointed out that the IMF predicts a decline in Egypt’s inflation rate. He added that the IMF Managing Director has expressed strong praise forEgypt’s “Decent Life” initiative, recognizing its pioneering nature.
