Modern Egyptian Economy

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Introduction: The Egyptian economy has been witnessing a series of economic and political reforms since the beginning of the 21st century. Starting from post-Gamal Abdel-Nasser’s era in 1990 several economic reforms and monetary policies have been implemented by the Central Bank of Egypt (CBE) and other economic institutions. The economic reforms started by the Economic Reform and Structural Adjustment Programme (ERSAP), offered by the International Monetary Fund (IMF), in 1991 with the aim of amending the economic imbalance of demand and supply sides within the economy, rebalancing the government budget deficit and stabilizing inflation rates. The ERSAP was followed by several monetary policies, such as the “float” of the Egyptian pound implemented in 2003 by the central bank, most of which were with the main purpose of inflation targeting and price stabilizing, since inflation has been one of the main economic issues facing Egypt and hindering it’s economic growth and development. The 2003 floating of Egyptian pound policy was a turning point in the Egyptian economy, allowing exchange rates to float freely after decades of manipulating the real exchange rates to keep the nominal Pound to Dollar exchange rates constant. Starting from the beginning of the 21st century several transforming events had occurred in the Egyptian economy, most notably the monetary policies implemented by the central bank in 2003 and 2005, with the main
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