AfricaEgypt Requests IMF Support as Economy Buffeted by Ukraine...

Egypt Requests IMF Support as Economy Buffeted by Ukraine Spillover

-

- Advertisment -spot_img
FLASH SALES

As the country faces stiff economy situations, Egypt has asked for the International Monetary Fund‘s support to implement a comprehensive economic program.

The IMF said on Wednesday, March 23 that Egypt has reached out for economic intervention, Reuters reports.

The continued exchange rate flexibility would be essential to absorb external shocks, it said in a statement.

FREE DELIVERY

The IMF is working closely with Egyptian authorities to prepare for discussions with a view to supporting sustainable, job-rich, and inclusive growth, it added.

The new program could entail additional IMF funding, an Egyptian Cabinet spokesman said in a separate statement.

Egypt is under new economic pressure following Russia’s invasion of Ukraine, which prompted foreign investors to flee emerging markets.

On Monday, March 21, the government let the Egyptian pound depreciate by 14% after it had remained little changed since November 2020. On Wednesday, the currency appreciated slightly to 18.32 pounds to the dollar.

Russia and Ukraine were the main exporters of wheat to Egypt – typically the world’s top importer – and major sources of tourism.

“The rapidly changing global environment and spillovers related to the war in Ukraine are posing important challenges for countries around the world, including Egypt,” the IMF said.

“Continued exchange rate flexibility will be essential to absorb external shocks and safeguard financial buffers during this uncertain time. Prudent fiscal and monetary policies will also be needed to preserve macroeconomic stability.”

The government on Monday announced a 130-billion-Egyptian-pound ($7.05-billion) economic relief package, a move that analysts said seemed designed to win IMF support.

In the statement, the IMF praised “authorities’ recent actions to expand targeted social protection.”

It would be recalled that Egypt has turned to the IMF three times in the last few years. It borrowed $12 billion under an Extended Fund Facility in November 2016, $2.8 billion under a Rapid Financing Instrument in May 2020, and $5.2 billion under a Stand-by Arrangement in June 2020.

 

newswebbs
newswebbshttps://newswebbs.com
New Webbs is an independent online news platform launched with the aim of connecting the world with the latest news on the web.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

AfDB Says Rising Cost Of Living Could Lead To Social Unrest In Nigeria, Others

The African Development Bank (AfDB) has warned that the escalating prices of fuel and other essential commodities might provoke...

Ibadan Residents Protest Over Economic Hardship

Ibadan, Nigeria - Following high cost of living, food inflation and current economic hardship in the country, the residents...

NGO Relieves Widows With Cash, Food Items In FCT

Abuja, Nigeria -  In a bid to alleviate the current economic challenges in the country, the Touch Me Foundation...

Customs Intercepted 15 Trucks Of Smuggled Foods In Sokoto

Sokoto, Nigeria - The Nigeria Customs Service, on Sunday, said that it intercepted 15 trailers that were fully loaded...
- Advertisement -spot_imgspot_img

South Africa, Cote d’Ivoire, Other Embassies Owing $5.3M Ground Rents In Abuja

Abuja, Nigeria - Foreign embassies and high commissions owed ground rents of $5,368,218 million in 2023, disclosed the Federal...

natnudO Foods, FUNAAB Partner For Entrepreneurial Poultry Project

Abeokuta, Nigeria - Fueled by a shared vision of nurturing future agricultural leaders and boosting Nigeria's food security, natnudO...

Must read

South Africa, Cote d’Ivoire, Other Embassies Owing $5.3M Ground Rents In Abuja

Abuja, Nigeria - Foreign embassies and high commissions owed...

For Every $1 Gains From Tobacco, Country Spends $3 On Healthcare

Lagos, Nigeria - The Federal Government has stated that...
- Advertisement -spot_imgspot_img

You might also likeRELATED
Recommended to you