The Central Bank of Egypt said that reform measures have been taken to ensure macroeconomic stability and achieve sustainable and comprehensive economic growth. In achieving price stability, this will enable the Central Bank of Egypt to work on creating and maintaining adequate levels of international reserves.
The Central Bank of Egypt will gradually cancel the instructions issued on February 13, 2022, regarding the use of documentary credits in import financing operations, until the completion of their complete cancellation in December 2022.
This is an incentive to support economic activity in the medium term. The Central Bank of Egypt will also work on building and developing the financial derivatives market with the aim of deepening the foreign exchange market and raising the levels of liquidity in foreign currency.
The Central Bank had announced the decision of the Monetary Policy Committee in its extraordinary meeting to raise the rates of deposit and lending overnight and the price of the main operation of the Central Bank by 200 basis points to reach 13.25%, 14.25% and 13.75%, respectively. The credit and discount rate was also raised by 200 basis points to reach 13.75%.