News Brief: IMF Managing Director Köhler Welcomes Arab Republic of Egypt's Exchange Rate Move

August 6, 2001

Horst Köhler, Managing Director of the International Monetary Fund, made the following statement today:

"We welcome the changes introduced yesterday to the exchange rate system in Egypt. The 6½ percent depreciation of the central rate from LE3.90 per U.S. dollar to LE 4.15 per U.S. dollar, on top of the significant depreciation over the past year, will further strengthen competitiveness, helping to boost exports and economic growth. The doubling of the width of the currency band to plus or minus 3 percent will provide greater room for the exchange rate to respond to changes in economic conditions. We also welcome the authorities' commitment to continuing exchange rate flexibility, as well as to ensuring adequate liquidity in the exchange market."


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