IMF: Exchange Rate Flexibility Strengthened Egypt’s Foreign Reserves

The International Monetary Fund (IMF) said Egypt’s adoption of a flexible exchange rate policy has helped strengthen the country’s external position and boost its foreign currency reserves, reflecting improved economic stability.

The IMF noted that Egypt’s net international reserves increased from about $54.9 bn in December 2024 to approximately $59.2 bn by the end of 2025, supported by exchange rate flexibility and improved market confidence.

According to the Fund, the flexible exchange rate has played a key role in stabilizing the foreign exchange market and attracting foreign inflows, contributing to a stronger external financial position.

The IMF also pointed to improving macroeconomic indicators, including higher economic growth and moderating inflation, as signs of progress under Egypt’s economic reform program.

The Fund emphasized that maintaining exchange rate flexibility remains a cornerstone of Egypt’s reform agenda and is essential to preserving macroeconomic stability and strengthening the country’s resilience to external shocks.