CAIRO - 3 May 2023: Egypt is serious about implementing a flexible exchange rate system, Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF), Jihad Azour, said Wednesday.
“Egypt is working to restore investor confidence in an economy that was damaged by the repercussions of the Russian invasion of Ukraine,” according to Azour’s televised statements.
Egypt agreed with the IMFon a $3 billion program distributed in nine installments, and it actually got the first installment, but the first review was stalled in mid-March, which deepened concerns about the current situation, which is witnessing a foreign currency crisis and the highest inflation rate in years.
“There is strong cooperation between the Fund's team and the Egyptian authorities, and the government is serious about this,” Azour added in his statements.
Egypt has halved the value of the pound against the dollar since March 2022, and analysts expect another devaluation this year.
As part of a broader program to reform the economy and secure foreign currency, Egypt has also revived a plan to sell stakes in state-run companies, including two of the military.
Egypt recently established a "pre-IPO" fund, which aims to restructure some state-owned assets and prepare them for offering in the market.
It expects to collect at least $2 billion from the sale of some assets by the end of next June.
“During the past few years, Egypt has witnessed a large number of reforms. The Egyptian economy has been able to face major shocks,” according to Jihad Azour.