01:34 PM
Thursday, April 13, 2023
Cairo – Masrawy:
The International Monetary Fund believes that adjusting the exchange rate of the pound against the dollar is a key factor for the stability of the Egyptian economy, while reducing inflation to the target set by the Central Bank is necessary.
Tobias Adrian, head of the Monetary and Capital Markets Department at the International Monetary Fund, said in an interview with Al-Sharq – Bloomberg Saudi Arabia, that adjusting the exchange rate of the pound allows the central bank to implement monetary policies that are favorable to local conditions.
The Central Bank has allowed flexibility in the exchange rate of the pound against the dollar since the end of last year, as one of the terms of the agreement with the International Monetary Fund, on a $3 billion loan.
The exchange rate of the dollar in official banks has exceeded the level of 30 pounds during the current days, compared to the level of 15 pounds at the beginning of the year.
He added, “Given the high rate of inflation in Egypt, it is necessary to implement a combination of monetary and fiscal policies to restore stability to the country’s economy.”
The annual inflation rate in Egypt rose during the month of March, reaching 33.9%, while the annual inflation rate in cities reached 32.7%.
The fund official said that the Central Bank of Egypt “must reach the inflation target in one way or another…and there are still more steps required to achieve that.”
The Central Bank set new targets for the inflation rate after exceeding the targets announced at the end of last year, which were set at 7% (±2%) during the last quarter of 2022.
