Arab Finance: Egypt cannot stabilize the EGP/USD exchange rate under the current flexible regime, which remains governed by supply and demand dynamics, according to the Central Bank of Egypt’s (CBE) Governor Hassan Abdalla.

Speaking at a dinner hosted by the Federation of Saudi Chambers of Commerce in Cairo, Abdalla confirmed that Egypt continues to follow a flexible exchange rate policy similar to that of global currencies.

In March 2024, the Egyptian government allowed the pound to depreciate by nearly 40% to around EGP 50 against the US dollar, marking a turning point in a two-year economic crisis.

The move coincided with the official adoption of a fully flexible exchange rate policy, a core condition set by the International Monetary Fund (IMF) to expand Egypt’s financing program from $3 billion to $8 billion.

Abdalla noted that Egypt’s macroeconomic conditions have improved significantly compared to the past, adding that the private sector has sufficient liquidity to ensure the provision of banking products and facilitate investment flows.

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