IMF’s Clarke praises Egypt’s reforms, reaffirms support during Cairo visit

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By Yomna Yasser
Egypt IMF
IMF Deputy Managing Director Nigel Clarke shakes hand with Egyptian Prime Minister Moustafa Madbouly during a series of high-level meetings with authorities this week in Cairo (Clarke’s X post)

The International Monetary Fund’s (IMF) Deputy Managing Director Nigel Clarke praised Egypt’s recent economic reforms and reaffirming the IMF’s commitment to support efforts to boost resilience and achieve inclusive, private sector-led growth.

Following a series of high-level meetings with Egyptian authorities this week, Clarke said in posts on social media platform X on Sunday and Monday, that he held “fruitful and productive” discussions in Cairo.

“Building on the recent reforms that have improved Egypt’s fiscal trajectory would help strengthen resilience to external shocks,” Clarke said, following his meeting with Minister of Finance Ahmed Kouchouk on Sunday.

The IMF official highlighted key policy moves, including Egypt’s transition to “a flexible exchange rate regime together with prudent monetary policy,” as instrumental in containing inflation and enhancing macroeconomic stability.

This transition “has helped Egypt strengthen resilience to shocks while reducing inflation,” he added.


Clarke also underscored the importance of maintaining momentum on reforms to unlock higher, more inclusive, and job-rich growth, led by the private sector.

 


During his meeting with Central Bank of Egypt (CBE) Governor Abdalla, Clarke said he reaffirmed the IMF’s “strong partnership” with Egypt and discussed efforts to “the continued building of resilience to external shocks.”


In talks with Prime Minister Moustafa Madbouly, Clarke reiterated the Fund’s “strong commitment” to supporting “Egypt and its people in strengthening the resilience of the economy and achieving higher, and private sector-led growth.”

“We discussed how we can best support Egypt in building a prosperous future for its citizens,” he said.


Egypt is currently under an expanded $8 billion loan programme with the IMF, agreed in March 2024, after a revised and extended deal aimed at bolstering the country’s economic reform agenda amid pressures from high inflation, currency depreciation, and external financing needs.

The IMF has consistently called for greater exchange rate flexibility, fiscal consolidation, and deeper structural reforms to improve the investment climate and enhance private sector participation in the economy.

Egypt’s reform program is being closely watched by international investors, particularly as the country navigates high inflation, fiscal consolidation, and a challenging global economic environment.

Attribution: Amwal Al Ghad English

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