his file picture taken on August 25, 2022 shows Egyptian pound, British pound sterling, and US dollar banknotes.
The package allows for a further $14 billion in possible financing for Egypt.
The Egyptian economy has been hit hard by years of government austerity, the coronavirus pandemic, and the fallout from the war in Ukraine. Egypt is the world´s largest wheat importer, with most of its imports having traditionally come from eastern Europe.
Since the start of 2022, the Egyptian pound has lost more than 60% of its value against the dollar, with the country currently facing a foreign currency shortage.
In recent months, Egypt has also been beset by rising inflation, with the annual rate reaching above 18% in November. The Central Bank has sought to curb the rise by raising interest rates.
The National Bank of Egypt and Banque Misr – two of Egypt’s state-run banks – announced they were offering yield saving certificates with 25% interest rates, a move experts believe is another attempt to rein in inflation.
Most Egyptians rely on the government subsidies to afford basic goods such as bread, policies that have been in place for decades. Almost a third of Egypt´s 104 million people live in poverty, according to government figures.
