Egypt has signed a staff-level deal with the International Monetary Fund (IMF) to secure an Extended Fund Facility (EFF) of $8 billion to overcome macroeconomic challenges its economy is facing.
on Wednesday, the Central Bank of Egypt (CBE) implemented an exchange rate flexibility, allowing the value of the Egyptian pound to be regulated by market forces as an attempt to alleviate an already ailing economy.
“Amid significant macroeconomic challenges that have become more complex to manage with the impact of the recent conflict in Gaza on tourism and Suez Canal receipts, staff also considered the authorities’ request for an augmentation of IMF support to Egypt from SDR 2.35 billion (equivalent to about US$ 3 billion) to SDR 6.11 (equivalent to about US$ 8 billion),” said an IMF statement.
However, this agreement is subject to approval by the IMF Executive Board.
The comprehensive policy package seeks to preserve debt sustainability, restore price stability, and reinstate a well-functioning exchange rate system while continuing to push forward deep structural reforms to promote private sector-led growth and job creation, the statement added.
The Egyptian authorities are showing a strong commitment to act promptly on all critical aspects of their economic reform program supported by the IMF, the global lender said.
Egypt’s international and regional partners will play a critical role in facilitating the implementation of the authorities’ policies and reforms. In this context, the recent investment deal in Ras ElHekma alleviates the near-term financing pressures, it added.
Egypt hikes interest rate
On the flip side, Egypt has implemented its biggest-ever interest-rate hike and allowed its currency to weaken more than 38% in a long-awaited devaluation, Bloomberg reported.
The series of moves included a 600 basis-point rate increase and came after Cairo struck a $35 billion deal late last month with the United Arab Emirates. A dire shortage of foreign exchange has until now hammered businesses and caused the cost of imported goods to soar. The Israel-Hamas war has added to economic pressures.
According to a report by The New Arab, the Egyptian economy has long been impacted by the divide between the official value of foreign currency and how it is worth in the parallel market.
Get your Ex-Lover Back Using Powerful Love Spell. My life become more beautiful since i contacted this real spell caster Dr Excellent for help” I was heart broken when my husband left me and moved to California to be with another woman. I felt my life was over and my kids thought they would never see their father again. I tried to be strong just for the kids but I could not control the pains that tormented my heart, my heart was filled with sorrows and pains because I was really in love with my husband. I have tried many options but he did not come back, until i met a friend that directed me to Dr.Excellent a spell caster, who helped me to bring back my husband after 11hours. Me and my husband are living happily together again, This man is powerful, Contact Dr Excellent for any kind of spiritual problems or any kind of spell or relationship problems he is capable of making things right for you with no side effect., Here his contact. WhatsApp him at: +2348084273514 “Or email him at: Excellentspellcaster@gmail. com
I visit your posting everyday.