Egypt to “bleed” reserves unless it further devalues EGP: IMF Chief
Updated 10/8/2023 7:10:00 AM
Arab Finance: Egypt will "bleed" valuable reserves if it does not devalue its currency once more, Bloomberg reported on October 5th, citing the International Monetary Fund’s (IMF) Managing Director Kristalina Georgieva.
“Egypt would bleed reserves protecting the pound and neither the country nor overall the environment is such that this is desirable. That is a problem that has to be solved,” Georgieva said.
However, Georgieva noted that the IMF's review of the country's $3 billion bailout program is making progress.
“In the last couple of days there have been some constructive engagements,” the IMF head said ahead of a speech she made in Abidjan, Ivory Coast, revealing “more systematic work” with Egypt in the next weeks.
Egypt has devalued the pound three times since early 2022.
On October 4th, it was reported that the IMF would conduct its annual assessment of Egypt’s economy after concluding the country’s delayed review of its loan program.
The IMF approved the 46-month $3 billion loan to Egypt under the Extended Fund Facility (EFF) in December 2022.
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