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Egypt-IMF deal stalls as devaluation rides on FX supply boost

When Egypt agreed a $3bn, 46-month financial support package with the IMF back in December, it vowed to adopt a flexible exchange rate regime.
02.07.23 | Source: the africa report



Egypt might have dodged a key demand from the IMF for now, as the country appears hopeful that it can unlock financial assistance without having to immediately resort to what is likely to be another painful devaluation round.  





When Egypt agreed a $3bn, 46-month financial support package with the IMF back in December, it vowed to adopt a flexible exchange rate regime, a key demand by the global lender to disburse the money over several tranches.


However, that commitment has not materialised so far, with the most populous Arab nation maintaining the exchange rate at LE30.90 per dollar since January, even though it trades at about LE37 per dollar on the black market.


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