In her recent statements, International Monetary Fund (IMF) Director Kristalina Georgieva has urged Egypt to consider another devaluation of its currency in order to preserve its reserves. This comes as the country has already devalued its pound three times since 2022, leading to a near 50% loss in its dollar value.
Georgieva lauded Egypt's economic recovery efforts but expressed concern over the country's falling net international reserves, as reported by HC Research. The IMF Director's comments underscore the growing concerns about debt crises in several nations, which she cited as a "top priority".
The director also highlighted the progress made by Zambia and Ghana under IMF programs. A pending memorandum of understanding is underway with Zambia, while Ghana is expecting a forthcoming $600 million IMF tranche.
Tunisia's need for fiscal strengthening was another issue Georgieva brought up. Even though the country received a $1.9 billion rescue package, there is no immediate plan for debt restructuring. High bond yields have been recorded in both Tunisia and Egypt.
In her address, Georgieva defended the G20 Common Framework for debt treatment, an initiative aimed at addressing sovereign debt crises in low-income countries. She also voiced her support for suspending debt payments during climate disasters, underlining the importance of financial resilience in the face of environmental challenges.
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