Egypt and the International Monetary Fund (IMF) have resolved major policy issues and will meet again on Saturday to finalize the loan – where IMF provides financing to member countries – programme, IMF Managing Director Kristalina Georgieva said. The two sides are still in the process of determining the Egyptian exchange rate policies, as the IMF previously said in a statement in March that Egypt should pursue continued exchange rate flexibility to absorb external shocks and safeguard financial buffers. In July, the IMF said that Egypt needed to make “decisive progress” on fiscal and structural reform to foster private sector development and reduce the role of the state. Egypt’s Minister of Finance, Mohamed Maait, noted that the government is on track to make the Egyptian pound exchange rate more flexible if necessary, and that the surge of the US dollar is putting pressure on all world currencies. Egypt is expecting a 15 percent increase in spending and a 14.5 percent rise in deficit, according to the 2022-2023 budget that has been approved by the parliament this year. Goldman Sachs Group Inc. estimates Egypt may need to secure a USD 15…
