RIYADH: The International Monetary Fund says Egypt’s economy is beginning to show signs of recovery as a consequence of the government’s recent efforts to re-establish macroeconomic stability.
According to the IMF’s most recent review report, Egypt’s inflation rate is still high but is starting to decline.
The North African nation has been implementing various economic reforms to preserve fiscal stability. One such reform was the unification of the official and parallel exchange rates in March.
Since then, the nation’s economy has greatly improved; the market now determines the Egyptian pound, bank foreign exchange backlogs have been cleared, and daily interbank global exchange turnover has increased.
The monetary policy tightening that accompanied the unification of the exchange rate reduced speculation, attracted foreign investment, and slowed the price growth rate. Given the indications of improving sentiment, private sector growth should be ready for a surge, according to IMF deputy managing director and acting chair Antoinette Sayeh.
She went on, saying that “continuing to implement a tight monetary policy stance, continuing to shift towards a flexible exchange rate regime and a liberalised foreign exchange system, and further fiscal consolidation along with appropriate implementation of the framework to monitor and control public investment should support internal and external balance.
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