The International Monetary Fund (IMF) Executive Board has officially approved the combined fifth and sixth reviews of Egypt’s economic program, alongside the first review under the Resilience and Sustainability Facility (RSF). This milestone clears the way for Egypt to draw approximately $2.3 billion.
An informed source told Al-Masry Al-Youm that the disbursement—encompassing both loan tranches and the RSF portion—is expected to be transferred to the Central Bank of Egypt (CBE) within days. The RSF funds are specifically earmarked for environmental and climate-related projects.
Economic outlook and exchange rate stability
Dr. Fakhri Al-Fiki, former Chairman of the House of Representatives’ Planning and Budget Committee and Professor of Economics at Cairo University, emphasized that this influx comes at a critical time.
He noted that the funding will bolster the stability of the local exchange market and likely influence the USD/EGP exchange rate. This follows a recent uptick in the dollar’s value, driven by the exit of over $1 billion in “hot money” (portfolio investments) from the debt market.
Dr. Al-Fiki anticipates the transfer will be completed before the end of February. Once added to the CBE’s foreign reserves, these funds will assist the government in meeting debt obligations or financing strategic imports such as wheat and petroleum, thereby providing the liquidity necessary to stabilize the market.
Geopolitical risks and market fluctuations
Financial and banking expert Dr. Sahar Al-Damati offered a note of caution regarding the impact of American economic shifts and geopolitical tensions on international and regional markets.
However, she downplayed the severity of recent hot money outflows, citing the presence of steady foreign currency inflows.
Dr. EA-Damati expects the USD/EGP rate to fluctuate between 47 and 50 EGP in the coming period, aligned with global projections.
