Egypt’s PM, c.bank governor discuss inflation, FX flows ahead of economic programme

Egypt is stepping up coordination between the government and the central bank as officials prepare a national economic transformation programme focused on lowering inflation, boosting foreign-currency inflows, and strengthening reserves.

Prime Minister Moustafa Madbouly met Central Bank of Egypt (CBE) Governor Hassan Abdalla on Monday to discuss economic priorities and measures to reinforce monetary and financial stability, the Cabinet said.

The meeting covered coordination on economic, fiscal and monetary policies as part of preparations for the new economic programme.

Madbouly and Abdalla reviewed efforts to bring inflation lower, increase foreign-currency inflows, and strengthen Egypt’s foreign-exchange reserves, alongside ongoing economic and structural reforms.

Foreign-currency reserves remain at adequate levels to cover strategic commodity needs, the officials said. The government and central bank are also continuing to build strategic stocks of essential goods.

Egypt has been pursuing reforms to shore up macroeconomic stability and improve foreign-currency availability after periods of pressure on its external financing position.

The government is putting the final touches on a comprehensive economic strategy to guide policy after the current IMF-supported reform programme ends, with the plan expected to be completed by the end of September. The IMF programme is due to conclude by year-end.

Abdalla also briefed Madbouly on new rules approved by the central bank’s board governing digital financial identity services, allowing banks to identify customers and verify their identities electronically.

The framework establishes governance rules and responsibilities for participating parties, as well as technical and operational requirements and safeguards for data protection and cybersecurity, Abdalla said.

The rules are part of the CBE’s broader push to accelerate digital transformation and financial inclusion and expand the use of digital financial services.