Amidst economic turmoil and the fallout from the Gaza conflict, Egypt's central bank has raised interest rates by 200 basis points to 21.25% as part of ongoing negotiations with the IMF. The IMF has made 'excellent progress' on Egypt's reform program review, with a MEFP to be finalized in the coming days. The agreement on the 'main policy elements' of an economic reform program suggests an imminent expansion of Egypt's $3 billion bailout package. The country faces significant economic challenges, including a debt crisis, a currency in freefall with the official exchange rate moving from 15.7 to 30.9 pounds per dollar and black market rates between 65-70, and inflation soaring to 33.7%. The IMF has indicated that a deal, potentially involving a $10 billion loan, is 'close' and a top priority, as noted by the IMF Managing Director and due to Egypt's regional importance.
Egypt’s economic problems predate the war in Gaza, but the conflict and its overspill in the Red Sea are threatening to tip it over the edge. At the same time, they are boosting its negotiating power https://t.co/o9zGtyzyL5 👇
The war in Gaza is exacerbating Egypt’s economic collapse. But the government hopes the conflict could be its salvation https://t.co/St9nKpSJkO 👇
Will Egypt succeed in upping its multimillion-dollar IMF bailout? @JackvDutton investigates https://t.co/wHW7OP4Q3k
Egypt: Central bank raised interest rates by 2 percentage points Move in macro variables since Jan-2022: - interest rate: 8.25% --> 21.25% - inflation: 7.3% --> 33.7% - pounds per dollar: 15.7 --> 30.9 (official) --> 65-70 (black market) https://t.co/dO1dDjS5gW
Egypt has 3 economic problems: 1. Debt 2. Freefalling currency 3. Inflation Authorities see one lifeline: a $10 billion loan from IMF IMF: Deal is "close", and talks are a “top priority” because of Egypt’s importance to the wider region https://t.co/mM2galwIGq
The fallout from the war between Israel and Hamas has made Egypt’s already feeble economy worse. To give the Middle East a shot at stability, the world should hold its nose and bail the country out yet again https://t.co/1NWPk68LA1 👇
IMF Boss Says Deal With Egypt ‘Close’ After Rate Hike Caps Talks The International Monetary Fund is close to agreeing on a new financial package for Egypt, according to the Washington-based lender’s managing director. “We are in this very last stretch, where we are working on… https://t.co/JPO1SUxPjg
💡 Egypt: MPC hikes policy rates by 200bps to contain inflationary pressures - @EmergingMWatch on https://t.co/orvmA6Wqwk Full Story → https://t.co/Z4V1QQj3rE
The IMF says it is close to a deal to expand Egypt's stalled $3bn bailout package, and the Egyptian central bank unexpectedly raised interest rates by 200bps, which suggests that another devaluation of the pound is coming soon. https://t.co/MwBl2xceaK
IMF, Egypt agree on 'main policy elements' of economic reform programme https://t.co/EzzMBBmj1q https://t.co/GoRxji0XSU
IMF mission makes “excellent progress” on #Egypt’s reform program review, MEFP to be finalized in upcoming days https://t.co/Rkt7lKuCD2
Egypt cenbank raises interest rates by 200 bps amid IMF talks https://t.co/Gl7AwxzOC4 https://t.co/t5LTrUkikJ