SPECIAL REPORT: EGYPT’S LOWER VALUE IMF DEAL OFFERS FISCAL RELIEF ALTHOUGH UNREST RISKS INTENSIFY

   Thu, 10 November 2022

Egypt’s recent agreement with the International Monetary Fund for a USD 3 billion loan could help stabilise macroeconomic conditions in the short term and is anticipated to ease account pressures. While the floating of the currency off the back of the deal will likely increase inflationary pressures and pressure consumption, it is expected to help address imbalances in the currency market. That said, social grievances after the floating of the currency have increased. In the low likelihood that protests erupt and paralyse the economy, it could derail the recovery in the tourism sector and result in a wider current account deficit.