Arab Republic of Egypt: Third Review Under the Extended Arrangement Under the Extended Fund Facility, Monetary Policy Consultation Clause, Requests for Waivers of Nonobservance of a Performance Criterion and Applicability of Performance Criteria, and Request for Modification of Performance Criteria-Press Release; and Staff Report
IMF Staff Country Reports, August 26, 2024
Source details
- Canonical URL
- Arab Republic of Egypt: Third Review Under the Extended Arrangement Under the Extended Fund Facility, Monetary Policy Consultation Clause, Requests for Waivers of Nonobservance of a Performance Criterion and Applicability of Performance Criteria, and Request for Modification of Performance Criteria-Press Release; and Staff Report
Other formats
Bibliographic details
- Published: August 26, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400288869.002
Overview
- This paper presents Arab Republic of Egypt’s Third Review under the Extended Arrangement under the Extended Fund Facility (EFF), Monetary Policy Consultation Clause, Requests for Waivers of Nonobservance of a Performance Criterion and Applicability of Performance Criteria, and Request for Modification of Performance Criteria.
- The Egyptian authorities’ recent efforts to restore macroeconomic stability have started to yield positive results.
- A flexible exchange rate regime remains a cornerstone of the authorities’ program.
- The regional environment remains difficult, and complex domestic policy challenges require decisive implementation of the authorities’ reform program.
Key findings and macroeconomic conditions
- Inflation remains elevated but is coming down.
- Continued fiscal consolidation, with strengthened revenue mobilization, is needed to create the space required to expand social programs.
- Meaningfully advancing with the structural reform program would significantly improve growth prospects.
- Managing the resumption of capital inflows prudently will be important to:
- contain potential inflationary pressures, and
- limit the risk of future external pressures.
Policy recommendations and program elements
- Maintain a flexible exchange rate regime as a program cornerstone.
- Continue fiscal consolidation while strengthening revenue mobilization to enable expansion of social programs.
- Decisively implement the authorities’ structural reform program to improve growth prospects.
- Prudently manage capital inflows to contain inflationary pressures and limit external vulnerabilities.
Subjects and keywords
- Subject: Budget planning and preparation, Exchange rate arrangements, Foreign exchange, Public financial management (PFM), Revenue administration
- Keywords: Budget planning and preparation, consultation band, currency government T-bills, Exchange rate arrangements, Global, headline consumer price inflation, monetary policy committee, NIR floor, supplementary letter of intent, waiver request
Content in this bundle
- 1egyea2024002-print-pdf