IMF Mission statement for developments & policies of Egypt
20 Dec '06
3 min read
The following statement was released in Cairo by an International Monetary Fund (IMF) staff Mission:
A staff mission of the International Monetary Fund (IMF) led by Mr. Klaus Enders visited Egypt during December 4-14, 2006 to take stock of the recent economic developments and the policy stance since the conclusion of the last Article IV Consultations in July 2006. A fuller review is planned for mid-2007 in the context of the IMF's annual consultation with Egypt.
Since the last discussions, economic growth has gathered additional momentum and investment has picked up. The foreign exchange position has remained healthy and financial sector reforms are proceeding at a steady pace.
A number of important privatization projects, including the Bank of Alexandria, were concluded, and FDI flows in recent months have exceeded expectations. Underpinning these developments is the continued confidence in the depth and breadth of the structural reforms underway in Egypt.
The mission shares the authorities' assessment that some of the factors driving inflation are transitory and will dissipate over time; others are more durable and require a policy response. In his regard, the recent tightening of monetary policy by the Central Bank of Egypt (CBE) has been timely and appropriate.
Going forward, the mission welcomes the CBE's intention to remain vigilant and act as appropriate to contain inflation expectations, restrain liquidity growth, and ensure market confidence.
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