H.E. Mr. Hassan Abdalla, Governor of the Central Bank of Egypt (CBE) and Egypt’s Governor to the International Monetary Fund (IMF), participated via video conference in the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region meeting of Central Bank Governors and Ministers of Finance, held as part of the IMF–World Bank Spring Meetings 2026.

In his remarks, the Governor reviewed the latest economic developments in Egypt and the progress achieved in the economic reform program. He emphasized that Egypt has successfully implemented significant economic reforms since 2024, spearheaded by the move towards an inflation-targeting regime and a flexible exchange rate. This has contributed to a decline in inflation from a peak of 38% to 11% in January 2026, while international reserve levels reached an all-time high of around USD 53 billion as of March 2026.

He further addressed the implications of the current regional conflicts and geopolitical tensions, highlighting their impact on inflation, external balances, and capital flows. Mr. Abdalla reaffirmed the Central Bank’s commitment to maintaining a flexible exchange rate, allowing the currency to act as a shock absorber in the face of external pressures. This was clearly evidenced by having the EGP recover 50% of its earlier losses in just a few days, on improved resources and backed by de-escalation scenarios.

The Governor affirmed that these factors underscore the enhanced resilience, and more importantly, they point to a deep-seated belief in Egypt’s longer-term reform story and its unwavering potential. He also reiterated that the CBE stands ready to take the necessary measures to ensure that inflation expectations remain well anchored, emphasizingthe Egyptian economy’s improved capabilityto navigate external shocks - compared to previous geopolitical crises - supported by ongoing structural reforms and improved policy frameworks.

Moreover, Mr. Abdalla highlighted the critical role of international cooperationand global institutions in providingadequate liquidity, which is a crucial element in mitigating external shocks, underliningthe support of the IMF, particularly should these shocks persist for a long time.

The MENAP group serves as a key regional platform that brings together central bank governors, finance ministers, and international partners to discuss macroeconomic developments, policy coordination, and shared challenges across the region. The discussions this year revolved around the impact of geopolitical instability on each country in the region, and how the IMF can enhance its support to its members.                                

The participation of the Governor in the MENAP meeting reflects the CBE’scontinued engagement with regional and international partners to address shared economic challenges and promote financial stability and sustainable growth across the region.