'We won’t repeat past mistakes': Egypt PM says

During a press conference on Saturday, PM Madbouly made these remarks after inspecting health facilities in Giza and Cairo.

"The government will not repeat previous mistaken policies of keeping the exchange rate static on the assumption that a fixed rate demonstrates stability," said Madbouly.

He explained that fixing the exchange rate for long periods led to sharp and sudden devaluations of 30 or 40 percent when problems arose.

"Economic experts warned us against repeating these mistakes," Madbouly noted, adding that maintaining a flexible exchange rate system allows markets to trust the government’s commitment to follow through with adopted economic policies.

He explained that the dollar's value fluctuated between 4 to 5 percent ($1/EGP 47 to $1/EGP 49) after the country adopted a flexible exchange rate in March.

"The exchange rate could fluctuate by similar margins in the coming months based on the demand on the dollar."

He  said these fluctuations in the exchange rate are reasonable and do not harm the economy or impact investors' confidence.

"A flexible exchange rate system reflects that Egypt is creating an environment where investors can confidently plan for the next 15 to 20 years in the market," he added.

According to the CBE, Egypt's net international reserves (NIRs) rose to $46.9 billion by the end of October, up from $40.4 billion at the end of March.

The International Monetary Fund (IMF) projected Egypt's NIRs to grow from $47.2 billion in FY2024/2025 to $66.5 billion by FY2028/2029.

The government is committed to maintaining a flexible exchange rate under the $8 billion Extended Fund Facility (EFF) loan program with the IMF.

IMF Managing Director Kristalina Georgieva has recently emphasized the fund’s support for Egypt’s resilience and efforts to maintain economic stability despite regional tensions.