#Flexible #price #absorb #shocks #talking #float
03:03 PM Sunday, February 11, 2024
Kristalina Georgieva
Cairo – Masrawy:
Kristalina Georgieva, Director of the International Monetary Fund, said that a flexible exchange rate for the pound is necessary to absorb shocks.
Georgieva confirmed, in an interview with the East Economy website, that the talk with Egypt is about a flexible exchange rate and not “floating.”
Economic circles in Egypt are waiting for the price of the pound to be reduced during the next few weeks as part of Egypt’s return to its commitment to exchange rate flexibility, as part of negotiations with the International Monetary Fund to resume cooperation in implementing the economic reform program. It is expected that the value of funding allocated to it will increase from the current $3 billion after reaching an agreement soon. .
The price of the pound witnessed a reduction 3 times during the period from March 2022 to mid-last March, due to the foreign currency shortage crisis, which led to a rise in the price of the dollar by 96% during the aforementioned period, before Egypt returned to fixing the price of the currency in banks, which prompted the IMF to postpone… Conducting the first and second reviews of the reform program.
Kristalina Georgieva said that policymakers in Egypt should focus on inflation, according to East Economy.
This coincides with the decline in the annual inflation rate for the fourth consecutive month last January, falling in cities to a level below 30% for the first time in months after reaching its peak at 38% last September.
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