• On Friday, the International Monetary Fund (IMF) approved a deal to provide $3B support package to Egypt over a period of four years. This will bring in additional funding of about $14B and fund Egypt’s foreign currency financing gap.
• The package provides for a flexible exchange rate regime and immediate disbursement of $350M to support Egypt's balance of payments. It also includes structural reforms that will reduce the state's role in the economy and level the playing field between public and private sectors, as well as monetary policy tightening and fiscal consolidation measures to help Egypt recover from the coronavirus pandemic and war in Ukraine.