CAIRO - The Central Bank of Egypt managed to contain high inflation rates after the country devaluated its local currency amid an economic reform program in late 2016, an official from the International Monetary Fund (IMF) said on Thursday.
"Inflation in Egypt exceeded 30 percent and now declined to less than 10 percent, and it is expected to go on declining by the end of this year," Jihad Azour, IMF director of the Middle East and Central Asia Department, said in his remarks, according to Egypt's official MENA news agency.
He noted that the IMF board approved in a vote on Wednesday to disburse $2 billion as the final tranche of a 12-billion-dollar loan to support Egypt's economic reform plan.
"Egypt's economic reform program has showed successful accomplishments since 2016 through which it managed to improve economic indicators and achieve economic and financial transformation and stability," said the IMF official.
Egypt started its IMF-sponsored three-year austerity-based economic reform program in November 2016, including local currency devaluation, fuel and energy subsidy cuts, and introduction of a value-added tax. Azour said that the IMF continues providing Egypt with technical support and is ready to study any future financial cooperation if requested by the Egyptian government.