The International Monetary Fund (IMF) praised the progress made by reforms related to a $ 12 billion loan program for Egypt, calling on Egypt to maintain its tightening of monetary policy to contain inflation risks as a result of reduced fuel and electricity subsidies.
"The strong implementation of the program and overall positive performance have been instrumental in achieving macroeconomic stability," said David Lipton, First Deputy of General Director of the IMF pointing out that "Egypt's short-term growth prospects are well supported by the recovery of the tourism sector in addition to increasing the production of natural gas. "
According to the IMF, Egypt's strong foreign currency reserves are likely to withstand the tight global financial conditions that have seen a shift in capital inflows in emerging markets in recent months.
He added: “The good level of foreign reserves and exchange rate flexibility make Egypt well positioned to manage any acceleration of inflows, but this reinforces the importance of a sound macroeconomic framework and coherent policy implementation.”