News

Egypt’s Pound Flotation Receives International Support as Some MPs Push Back

Egypt’s Pound Flotation Receives International Support as Some MPs Push Back

6895483-money-of-the-world-dollars-euros-russian-roubles-thai-baht-turkish-lira-egypt-pounds-stock-photo

The World Bank and United States Secretary of State John Kerry praised Egypt for its decision to float the pound last week, while the move has been met with mixed feelings from Egyptian parliamentarians.

“Liberalizing its foreign exchange system and reducing costly fuel subsidies demonstrates a determination to put the country on the path to economic recovery,” Kerry said in a statement published on the State Department website on Saturday. “The task before them is a challenging one, but ‎it is encouraging that Egyptian leaders are making the difficult decisions needed to move their country towards prosperity.”

The World Bank also released a statement in support of the flotation, saying it will “boost the competitiveness of Egyptian businesses, support export growth, attract new foreign investment, free public resources for priority growth and social programs, and support incomes for the poor and the vulnerable.”

Egypt’s central bank floated the local currency in a surprise move early on Thursday, “moving to a liberalized exchange rate regime in order to quell any distortions in the domestic foreign currency market.”

Egypt has been waiting for the International Monetary Fund (IMF) to give its final approval to a USD 12 billion loan, which Egypt will use to support its reform program that aims to reduce the state’s large budget deficit.

IMF officials, including the Mission Chief for Egypt, Chris Jarvis and the Managing Director of the IMF, Christine Lagarde, also said they “welcomed” the central bank’s move to float the pound.

On the national front, the “Support Egypt” bloc, the majority coalition in Egypt’s parliament, released a statement announcing that it “fully supports” the flotation and other economic reforms the government is implementing.

However, some members of parliament are also disgruntled; the “25-30” bloc has criticized the flotation, saying the recent economic reforms “lacked vision and sufficient study” and will be burdensome for the majority of citizens.

The flotation of the local currency was one of the IMF’s prerequisites for giving its final approval to the loan.

Saudi's Aramco Suspends Oil Product Supply to Egypt 'Until Further Notice'
Egypt Prime Minister Paves the Way for Imminent Price Hikes

Subscribe to our newsletter


News

More in News

egypt

Egypt Defeats Uganda in African Cup of Nations

Egyptian StreetsJanuary 22, 2017
Egypt's Karim Abdel Gawad and France's Camille Serme

Egypt’s Karim Abdel Gawad Wins Tournament of Champions in New York

Egyptian StreetsJanuary 21, 2017
22.jpg.crop_display

Cairo Court Lists Egyptian Football Legend Aboutreika on Terror List

Egyptian StreetsJanuary 19, 2017
32385636795_e6f5d7101d_z

Egypt Secure Spot in Knockout Stage at 2017 Handball World Championship

Egyptian StreetsJanuary 19, 2017
1073779_big-lnd

Egypt’s Essam El-Hadary Makes African Cup History

Egyptian StreetsJanuary 18, 2017
pol

Eight Policemen Killed in Attack in Egypt’s New Valley

Egyptian StreetsJanuary 17, 2017
Tiran Island

Egypt High Court Declares Void Transfer of Tiran and Sanafir to Saudi Arabia

Egyptian StreetsJanuary 16, 2017
Top-best-hd-wallpapers-dubai-skyline-hd-wallpapers-imagen-by-balamuda

Egyptians Invest EGP 13 Billion in Dubai Real Estate in 2016

Egyptian StreetsJanuary 15, 2017
Egyptian Streets is an independent, young, and grass roots news media organization aimed at providing readers with an alternate depiction of events that occur on Egyptian and Middle Eastern streets, and to establish an engaging social platform for readers to discover and discuss the various issues that impact the region.

© 2016 ES Media UG. All Rights Reserved.