Egypt learned need for faster policy action during crises, central bank official says in London

Egypt learned the importance of faster and clearer policy decisions during recent economic shocks, Deputy Governor of the Central Bank of Egypt Rami Aboul Naga said on Wednesday.

He was speaking at an event hosted by the Egyptian Embassy in London in cooperation with the British Egyptian Business Association (BEBA).

Aboul Naga said policymakers had learned lessons from recent years of economic turbulence, particularly the need for timely decisions and clear communication.

“We were able to take very hard decisions,” he said, referring to a series of monetary and economic reforms implemented amid external shocks and domestic pressures.

He said Egypt had modernised its monetary policy framework since 2016, shifting away from using the exchange rate as the main anchor toward a framework focused more on inflation.

“To shift the compass towards inflation was a very hard challenge,” he said, adding that clear communication was key to helping markets understand policy changes.

Aboul Naga said timely action was essential in responding to economic shocks.

“The timeliness of taking the right decision is equally important as taking the decision itself,” he said.

He said confidence was central to economic performance, adding that many crises were driven by a loss of trust in policymakers.

“Many crises are born out of a lack of confidence,” he said.

Aboul Naga said transparency and communication were increasingly important for policymakers in an era of rapid information flows and market scrutiny.

“We learned the importance of transparency, candor, and sending honest messages,” he said. People ultimately know when economies face challenges, and confidence is built when policymakers explain those challenges openly and show how they intend to address them, he added.

He said investors assess institutional credibility and communication as much as economic indicators when evaluating countries.

The deputy governor said Egypt’s reforms over the past two years, including monetary tightening and exchange-rate liberalisation, aimed to stabilise the economy and attract investment.

The remarks were delivered during a reception hosted by the Egyptian Embassy in London in honour of Investment and Foreign Trade Minister Mohamed Farid and Housing Minister Randa El-Menshawy, alongside a delegation attending BEBA’s business mission to the United Kingdom.