By Ebi Kesiena
Egypt is set to receive approximately $2.3 billion after the Executive Board of the International Monetary Fund (IMF) approved the combined fifth and sixth reviews of the country’s economic reform programme, alongside the first review under the Resilience and Sustainability Facility (RSF).
The approval clears the way for the disbursement of funds, which an informed source said it is expected to be transferred to the Central Bank of Egypt (CBE) within days. Part of the financing under the RSF is designated specifically for environmental and climate-related projects aimed at strengthening long-term economic resilience.
Economic analysts say the funding arrives at a crucial period for Egypt’s economy. Dr. Fakhri Al-Fiki, former Chairman of the House of Representatives’ Planning and Budget Committee and a professor of economics at Cairo University, noted that the inflow is expected to support stability in the foreign exchange market and influence the Egyptian pound’s performance against the US dollar.
The development follows recent pressure on the currency after more than $1 billion in portfolio investments, commonly referred to as “hot money” exited Egypt’s debt market, contributing to an increase in the dollar’s value against the local currency.
Al-Fiki projected that once the funds are deposited into the country’s foreign reserves before the end of February, they will enhance liquidity and enable the government to meet external debt obligations as well as finance strategic imports, including wheat and petroleum products. He added that the injection could help ease market volatility and restore investor confidence.
Meanwhile, financial and banking expert Dr. Sahar Al-Damati cautioned that global economic shifts, particularly developments in the United States and ongoing geopolitical tensions, could continue to influence regional financial markets.
However, she downplayed concerns over recent capital outflows, noting that stable foreign currency inflows remain in place, helping cushion Egypt’s economy against external shocks.
