Egypt’s Hassan Abdalla among Global Finance’s top c.bank governors in MENA, Africa for 2024

Global Finance Magazine recognised Hassan Abdalla, Central Bank of Egypt (CBE) Governor, as one of the leading central bankers in the Middle East and Africa in 2024.

According to Central Banker Report Cards 2024: Africa And The Middle East, Global Finance said Egypt “seems back on track” after securing over $50 billion in support from international partners in early 2024.

The influx of over $50 billion in support has propelled the CBE’s foreign reserves “to an all-time high” of $46 billion.

In exchange for this financial assistance, the CBE has implemented a series of economic reforms, including a tighter monetary policy and a floating exchange rate.

These reforms have helped to align the official exchange rate with black-market rates, the Global Finance noted.

“He (Abdalla) also introduced exchange rate flexibility, which helped close the gap with the black-market rates but led to an immediate 40% drop in the Egyptian pound’s value … Although the governor claims not to “target a specific exchange rate,” the CBE had previously reversed devaluations when the pound dropped too low. For foreign investors, exchange rate stability is crucial, and the CBE’s ability to stick with this policy is pivotal to Egypt’s economic future.”

“At home, Abdalla’s top priority is controlling inflation, which hit 33.9% in 2023, far exceeding the CBE’s single-digit target. Despite the reforms, inflation remained high at 26.2% in August 2024.

Nevertheless, Global Finance said: “Egypt’s banking sector stands strong. Local lenders are some of the biggest in the Middle East and Africa, and fintech as a means of financial inclusion is also one of Egypt’s strengths. A regulatory push from the CBE on topics like open banking or digital KYC could allow the sector to grow even further.”

Attribution: Central Banker Report Cards 2024: Africa and The Middle East