IMF welcomes Egypt's float of pound

Ahram Online , Thursday 3 Nov 2016

International Monetary Fund
File Photo: International Monetary Fund. (Reuters)

The International Monetary Fund said it welcomes Thursday's decision by Egypt's central bank to float the country's pound.

In a statement emailed to Ahram Online, the IMF said the move "would boost competitiveness and attract foreign investment."

"We welcome the Central Bank of Egypt's decision to liberalise the foreign exchange system and adopt a flexible exchange rate regime," IMF Mission Chief for Egypt Chris Jarvis said.

"This will make more foreign exchange available. The flexible exchange rate regime, where the exchange rate is determined by market forces, will improve Egypt's external competitiveness, support exports and tourism and attract foreign investment," Jarvis added.

Egypt is waiting for IMF board approval of a $12 billion loan package to be delivered over three years.

Egypt's government says that it is carrying out economic reforms including the introduction of a value-added tax and cuts in energy subsidies.

Short link: