Egypt's deal with IMF to enhance ability to withstand external shocks: CBE governor

CAIRO - 27 October 2022: The deal reached with the International Monetary Fund (IMF) will undoubtedly help Egypt restore macroeconomic stability and enhance its ability to absorb external shocks, that have recently increased at the global level, affirmed Central Bank of Egypt (CBE) Governor Hassan Abdullah.

 

Addressing a press conference held with the IMF Thursday at the Cabinet's premises, Abdullah said that the CBE began to improve and enhance the efficiency of monetary policy and exchange rate market performance.

 

The CBE aims to gradually build up foreign reserves, he said, adding that a program has been devised after having made sure of bridging the financing gap for the next four years.

 

The CBE's goal is to double the reserves during this period, he went on to say.

 

The CBE governor, meanwhile, said that reaching an agreement between Egypt and the IMF came following several fruitful discussions held between the two sides.

 

Both sides agreed on an integrated package of policies, measures, as well as economic and structural reforms that cope with the national reform program, he added.

 

The CBE decided Thursday to employ a durably flexible exchange rate regime, leaving the forces of supply and demand to determine the value of Egyptian Pound against other foreign currencies, Abdullah pointed out.

 

The monetary policy aims to curb the inflation rates and keep prices stable in the local market, he further said.

 

Imports of goods worth up to $500,000, instead of $5,000 will be exempted from the requirement to open Letters of Credit (L/C), he noted.