Central Bank of Egypt highlights inflation drop to 11% and record USD 53bn reserves while reaffirming flexible exchange rate at MENAP meeting

The Central Bank of Egypt reported that Governor Hassan Abdalla, in his capacity as Egypt’s Governor at the International Monetary Fund, addressed the Middle East and North Africa, Afghanistan, and Pakistan (MENAP) group meeting during the 2026 IMF-World Bank Spring Meetings, outlining recent economic conditions and progress under Egypt’s economic reform programme. He pointed to reforms implemented since 2024, including the move to an inflation-targeting framework and a flexible exchange rate regime. Inflation was described as having declined from a peak of 38% to 11% in January 2026, while international reserves reached a record USD 53 billion at end-March 2026. Abdalla linked regional conflicts and current geopolitical tensions to pressures on inflation, the external balance and capital flows, and reiterated the Central Bank of Egypt’s commitment to maintaining a flexible exchange rate to absorb external shocks, noting that the Egyptian pound recovered about 50% of its prior depreciation within a few days amid improved resources and easing scenarios. He also highlighted the role of international cooperation and the IMF in providing adequate liquidity support if external shocks persist.