The Clap
The IMF announced its position on many issues related to the Egyptian economy. Here’s a summary of its most important points:
- The IMF lowered its forecast for the growth of the Egyptian economy during the current fiscal year from 4.4% to 4%.
- The IMF also said that the CBE is committed to a flexible exchange rate, but it can intervene in times of volatility.
- An agreement has been reached with the CBE regarding further tightening of monetary policy to control inflation.
- It is expected that Egypt will collect $2.5bn from the sale of shares of companies that will go to the pre-IPO fund in mid-2023, which will help reduce its debts.
So What
The loan that Egypt took will be issued in 8 equal installments at a value of $347 million twice a year until September 2026. One installment was already issued, which means that 7 installments remain.
Now What
The IMF does not expect Egypt to control inflation until two years from now, with the possibility of inflation declining to 7% in the fiscal year 2024-2025.
