According to a spokesperson for the IMF, the groundwork for the initial evaluation of Egypt’s economic reform plan with the organization has started. The spokesperson also mentioned that the dates for the review mission will be disclosed after they have been mutually agreed upon with the authorities.
The IMF approved in December a $3 billion Extended Fund Facility loan for Egypt, which has been under acute financial pressure since long-standing problems were exposed by the economic fallout from the war in Ukraine.
Disbursements under the 46-month program are subject to eight reviews, the first of which was dated March 15, 2023 in an IMF staff report published in December.
Among the key commitments that Egypt made to secure the loan were a permanent shift to a flexible exchange rate regime and wide-ranging structural reforms to reduce the state’s footprint in the economy.
Egypt’s currency has lost nearly 50 percent of its value over the past year following three sharp devaluations. In the past two weeks it has traded in a narrow band between 30.75 and 30.95 pounds to the dollar, according to Eikon data, although the pound’s value on the black market has slipped.
Analysts say the pound has come under renewed pressure partly due to delays in expected sales of state assets.