The International Monetary Fund (IMF) said, in a report published on Thursday, that there are early signs of an economic recovery as precautionary measures linked to the pandemic are gradually easing.
Portfolio flows are recovering in Egypt, where net inflows reached more than $9 billion between June-October, after more than $15 billion in outflows during March-April, reflecting attractive domestic returns with the 90-day government bonds at around 13.5%, according to the IMF.
“Official foreign exchange reserves rose to $38.3 billion in October, and the exchange rate rose by about 3% between June-November,” IMF added.
“The government has eased COVID-19 restrictions, while guidance on risk mitigation measures remains in effect, including social distancing and compulsory masks in several places, in addition to the resumption of International flights and the return of tourism in small numbers, helping capital to flow inside the country,” IMF emphasized.
The fund praised the multi-sector adaptation country and mitigation plans developed to reduce the country’s exposure to the impacts of climate change, including sea level rise and extreme weather conditions.
“Reform of fuel pricing, investment in solar and wind power complexes, projects to convert gasoline-powered vehicles into natural gas and the convert of public transport into electricity-powered are expected to boost the green recovery and create more jobs in the medium term,” IMF concluded.
