Quickly under the influence of the recent issuance of the Central Bank of Egypt, which coincides with pressure on most of the world’s economies due to the war in Eastern Europe between the two countries. Russia and Ukraine and their impact on commodity and food prices.
Egyptian Prime Minister Mostafa Madbouly announced, Thursday, that Egypt has held talks with the International Monetary Fund on possible financing to prevent the impact of the Russian-Ukrainian crisis on its economy in the event the conflict continues for a long time.
Madbouly added that Egypt has been in talks with the fund since the summer of 2021, when it reached a financing deal worth $5.2 billion, but the discussions were only related to providing technical support.
“Following the recent events in Ukraine, and in order to prepare for the worst, Egypt has asked the International Monetary Fund to provide part of the financing if necessary,” the prime minister said.
And Western media said last week that Egypt is negotiating a possible support with the International Monetary Fund, which may include loans, to deal with the repercussions of the Russian-Ukrainian war.
She added that the discussions are looking at several options, including the so-called prudential line, credit liquidity that can be tapped if necessary, or other forms of financial assistance.
The sources said the talks included a non-financial agreement, such as the so-called Policy Coordination Tool, where reforms were discussed and agreed upon.
“We will continue to monitor the situation closely and will remain in close contact with the Egyptian authorities,” Celine Arad, the head of the IMF mission in Egypt, told the news agency.
Today, Monday, the Central Bank of Egypt officially raised the exchange rate of the dollar against the British pound by 2.53 piasters when banking transactions were closed, with a focus on maintaining a flexible exchange rate policy.
Following the moves of other banks last Monday, the central bank dollar rose, from buying at 15.66 and selling at 15.75 to buying at 18.15 and selling at 18.28.
The Egyptian government has taken a series of decisions directed by President Abdel-Fattah El-Sisi to support citizens, in light of the global wave of price hikes and inflation that has affected Egyptian citizens.
The Egyptian government has decided to increase the tax-exempt limit by 25% to 30,000 after allocating a 130 billion support package to counter the impact of global economic challenges and mitigate their impact on citizens.
The Treasury has set commodity tariffs and production requirements at 16 in US dollars through the end of April, and the Prime Minister’s decision to price free bread and fennel has been published in the Official Gazette in an issue published Monday morning.
Another decision demanded the outlets to publish the price of bread so that consumers can see it, and to impose a fine of not less than 100,000 pounds and not more than 5 million pounds. Competition Protection Law.
The decision set the price of a luxurious loaf of 45 grams at 50 grams, 65 grams at 75 grams, and 11.5 pounds per kilo of packaged bread. As for fino bread, it was decided to set the price of 40 grams at 50 piasters.
The Egyptian Cabinet agreed to pay a special incentive of 65 pounds for the supply and shipment, in addition to the predetermined supply price, bringing the total price of the supply inclusive of the special incentive.
Central Decision The Monetary Policy Committee of the Central Bank of Egypt decided in an extraordinary meeting last Monday to increase the overnight deposit and lending rates and the main business rates of the Central Bank by 100 basis points.
At 9.25%, 10.25% and 9.75%, respectively, the credit and discount rates were raised by 100 basis points to 9.75%, and the Monetary Policy Committee is scheduled to meet on March 24.