Press Release No. 03/12

Press Release: IMF Welcomes Arab Republic of Egypt's Decision to Adopt a Floating Exchange Rate Regime

January 30, 2003

Ms. Anne Krueger, First Deputy Managing Director of the International Monetary Fund (IMF), issued the following statement today after the Arab Republic of Egypt's decision to adopt a floating currency regime:

"The IMF welcomes the decision of the Egyptian authorities to adopt a fully flexible exchange rate regime. Such flexibility is important for the continuing efforts of the authorities to introduce structural reforms to promote economic efficiency and to stimulate trade and investment. It will help to create the necessary climate for promoting sustainable economic growth.

"Management and staff of the IMF look forward to continuing our close working relationship with the Egyptian authorities, and remain supportive of Egypt's commitment to market-based reforms."