IMF Continues Discussions with Egypt and Pakistan on Economic Reforms and Bailout Agreements

The International Monetary Fund (IMF) and Egypt have not yet agreed on a date for the initial review under a $3bn financial package signed in December, according to an IMF official. The IMF has called for Egypt to adopt a flexible exchange rate, reduce inflation by using monetary policy instruments, especially interest rates, and open more space for the private sector by levelling the playing field with state companies. The official Egyptian pound's exchange rate has remained nearly unchanged for more than a month at about 30.93 to the dollar, despite a promise by the central bank in October to let supply and demand determine its price.