The Egyptian pound began to recover against the US dollar and the basket of global and Arab currencies after a period of decline, as the Egyptian currency continued to stabilize below 49 against the US currency in all Egyptian banks after exceeding this level a few days ago.
This stability was supported by the International Monetary Fund’s announcement on Monday that it was easing some of the conditions of the financial support package provided to Egypt, along with reassuring statements from the Egyptian finance minister on the country’s economic situation.
Egypt had reached a financing agreement with the IMF in 2022, but payments were delayed several times as a result of Egypt’s failure to comply with some conditions, especially with regard to exchange rate flexibility.
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Statements of the Minister of Finance
The Egyptian Minister of Finance, Ahmed Kajouk, confirmed in recent statements that the economic situation in Egypt has become more stable, pointing to the ongoing efforts to attract private investments. He added that the financial performance indicators in last year’s budget, which ended in June 2024, were positive and satisfactory.
Kajok pointed out that the Ministry of Finance succeeded in reducing the budget deficit to 6.1%, and achieving a primary surplus of 3.6%, including the returns of Capital of Wisdom.
“This motivates us to continue the path of economic reform despite the global and regional challenges we face, and we are committed to improving financial risk management to minimize the negative impact of these repercussions on various sectors and citizens.”
He stressed that the Egyptian government adopts a comprehensive and consistent vision to enhance the competitiveness of the Egyptian economy, and push the wheel of export and investment, amid the current global and regional challenges.
He added that fiscal policy seeks to be more stimulating for private sector participation in economic activity, which contributes to exploiting the available preferential advantages, and benefiting from advanced infrastructure and investment incentives, with the aim of enhancing local production and manufacturing.
Exchange rate flexibility
The IMF confirmed that the foreign exchange rate in Egypt has been relatively stable since the March reforms, and that only market mechanisms determine the exchange rate.
The IMF praised the move to eliminate the accumulation of demand for foreign exchange in Egyptian banks, pointing out that the value of daily transfers between banks (interbank) in foreign currency has risen significantly recently.
The IMF explained that several international companies operating in Egypt have confirmed their smooth access to foreign currency for the purposes of redistributing profits.
The IMF stressed that the Egyptian banking sector is stable, noting that banks in general achieve profitability and have sufficient capital liquidity, noting the high net foreign assets of banks, which reflects a clear increase in foreign capital inflows.
Dollar today against the Egyptian pound
The price of the US dollar in Egypt continued its movement below the 49th level against the Egyptian pound in Egyptian banks at the end of trading today.
The highest price of the dollar against the Egyptian pound was recorded at the Industrial Development Bank, reaching levels of 48.73 for buying, 48.83 for selling.
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