Egyptian economist Dr. Mostafa Badra said that the International Monetary Fund mission approved some of the fundamentals and mechanisms 6 months ago during the initial agreement that the government must follow.
Badra said the government must follow the principles and mechanisms endorsed by the International Monetary Fund mission in order to obtain final approval for an IMF loan, including improved private sector capacity and exchange rate flexibility, and this is nothing new.
Badra added in television statements on Saturday night that the approval of the IMF loan is a sign of confidence and stability for the Egyptian economy and gives confidence to investors to come back again to invest in Egypt, noting that the fund has refused the Arab country to negotiate from scratch for a loan from because of the instability of its internal conditions.
Badra indicated that the first tranche of the loan was $750 million, but Egypt received $347 million with an increase in financial funding to $14 billion instead of $9 billion.
The expert stressed: “Foreign exchange reserves will not be used to support the pound against other currencies.”
Badra added that there is a clear foreign exchange deficit in the market, and Egypt has entered a stage of inflationary stagnation, citing developments in the real estate sector and the gold market, expecting an interest rate cut during a meeting of the Central Bank Policy Committee next Thursday.
Source: Cairo 24