The International Monetary Fund welcomes measures taken by the Central Bank of Egypt to maintain tighter control over foreign currency supply in order to safeguard nation's international reserves
The International Monetary Fund said on Monday it welcomed steps that Egypt has taken to stop a drain on its international reserves which had recently caused Egyptian pound hit record lows.
"We welcome the measures taken by the Central Bank of Egypt (CBE) to ensure that the country will continue to maintain a level of international reserves that can support its international trade and payments," an IMF spokeswoman said.
"IMF staff is in close contact with the authorities and we remain strongly committed to supporting Egypt."
Egypt, which has spent more than $20 billion over the past two years to defend the pound, imposed a new currency regime on Saturday that includes regular foreign currency auctions. The pound hit record lows in auctions on both Sunday and Monday in what appeared to be an effort to achieve an orderly devaluation.
The IMF's stamp of approval is important to the government because Egypt is hoping to secure a $4.8 billion loan from the lender.
Source: Ahram Online