Egypt, Turkey Co-Chair Regional Financial Stability Talks amid Rising Geopolitical Risks

Egypt’s central bank governor underscored the need for stronger regional coordination and proactive risk management as financial leaders from across the Middle East and North Africa convened for high-level consultations against a backdrop of mounting global uncertainty.

The meeting, held via video conference, was co-chaired by Hassan Abdalla, Governor of the Central Bank of Egypt, and Fatih Karahan, Governor of the Central Bank of the Republic of Turkey. It brought together senior officials from 11 countries, including Saudi Arabia, United Arab Emirates, and Bahrain, alongside representatives from the International Monetary Fund and the Financial Stability Board.

The session formed part of the Middle East and North Africa Regional Consultative Group (RCG-MENA) under the Financial Stability Board (FSB), a platform designed to strengthen dialogue between member and non-member countries on financial system resilience.

In his opening remarks, Abdalla emphasized the importance of the forum in facilitating the exchange of expertise and policy coordination at a time of heightened volatility. He praised the group’s role in advancing financial and monetary stability, while fostering deeper economic cooperation across the region.

“Global financial conditions remain fragile, particularly in the Middle East, where geopolitical tensions continue to exert significant pressure,” Abdalla said, pointing to oil price fluctuations, supply chain disruptions, and volatile capital flows as key challenges shaping the current landscape.

Participants also reviewed the evolving priorities of the Financial Stability Board and the Group of Twenty (G20), focusing on risk assessments at both global and regional levels. Officials shared insights into how geopolitical developments are impacting domestic economies and banking systems, as well as the policy responses adopted to mitigate these risks.

During the session, Mohamed Abu Mousa, assistant to the governor of the Central Bank of Egypt, presented an overview of the economic repercussions facing the region and outlined the central bank’s approach to managing external shocks and maintaining stability.

Abdalla concluded by calling for the adoption of integrated governance frameworks capable of addressing crises through greater transparency, policy flexibility, and forward-looking risk assessment. He stressed that such measures are essential to safeguarding financial stability in an increasingly uncertain global environment.

Egypt’s participation in the meeting aligns with broader efforts to deepen its engagement in international financial forums and strengthen economic integration with Arab and African partners.

The MENA consultative group comprises 23 members, including Egypt, Turkey, Gulf states, and several North African economies. The Financial Stability Board, for its part, plays a central role in monitoring global financial developments and coordinating policy recommendations aimed at reinforcing the resilience of the international financial system.