Cairo: Prime Minister Mostafa Madbouly emphasized the importance of maintaining a flexible exchange rate policy, asserting that it would bolster the Egyptian economy’s sustainability, investor confidence, and the private sector’s growth. These remarks were made during a press conference following his visit to health facilities in Giza and Cairo.

According to State Information Service Egypt, PM Madbouly highlighted the government’s commitment to avoiding past policy errors, particularly the previous approach of keeping the exchange rate static. He described how such policies led to sharp devaluations of 30 to 40 percent during economic challenges, underscoring the need for a flexible exchange rate system to ensure market trust in the government’s economic policies.

Madbouly detailed that since adopting a flexible exchange rate in March, the dollar’s value has fluctuated between 4 to 5 percent, ranging from $1/EGP 47 to $1/EGP 49. He noted that similar fluctuations might occur in the coming months, depending
on the demand for the dollar, but assured that these variations are manageable and do not adversely affect the economy or investor confidence.

The Prime Minister emphasized that a flexible exchange rate system signals Egypt’s readiness to create a stable environment for investors, allowing them to plan confidently for the long term. This approach is intended to assure investors of the government’s dedication to maintaining sound economic policies and sustaining market stability for the next 15 to 20 years.