IMF boss: ‘putting water in a bucket with a hole’ to support Egyptian currency | by Crypto BHZ | Jun, 2023

IMF master’ putting water in a pail with a hole’ to support Egyptian currency

In a recent statement, the International Monetary Fund( IMF) master expressed enterprises about the sweats to support the Egyptian currency. Comparing the situation to” putting water in a bucket with a hole,” this analogy highlights the challenges faced by the country’s currency stabilization measures. This composition delves into the complications of supporting the Egyptian currency, assaying the underpinning issues and implicit results. By understanding the terrain and exploring necessary strategies, stakeholders can gain precious perceptivity into the country’s profitable situation.

The current IMF master is Krista Lina Georgieva. She has been the Managing Director of the International Monetary Fund since October 1, 2019. She’s a Bulgarian economist who preliminarily served as the Chief Executive Officer of the World Bank.

In April 2022, Georgieva said that supporting the Egyptian currency is like” putting water in a pail with a hole.” She was pertaining to the fact that Egypt’s central bank has been intermediating in the foreign exchange request to prop up the value of the Egyptian pound, but the currency has continued to cheapen.

Georgieva said that the IMF is willing to give fiscal backing to Egypt, but only if the government takes way to address the beginning profitable problems that are causing the currency to weaken. These problems include high situations of debt, a large budget deficiency, and a weak tourism sector.

The IMF’s commentary were met with review from some Egyptian officers, who indicted the IMF of being too harsh. still, Georgieva defended the IMF’s position, saying that it’s important to be realistic about the challenges facing Egypt’s frugality.

The IMF’s commentary punctuate the delicate situation facing Egypt’s government. The government is under pressure to support the value of the Egyptian pound, but it’s also facing a number of profitable challenges that make it delicate to do so. The IMF’s backing could be helpful, but it isn’t a magic pellet. The Egyptian government will need to take tough way to address the underpinning problems in its frugality if it wants to stabilize the currency and avoid a fiscal extremity.

Multiple Exchange Rates ‘ produce Privileged Positions for Some ’
According to the International Monetary Fund( IMF)’s managing director, Krista Lina Georgieva, trying to shore up the Egyptian currency without first plugging foreign reserves leakages is akin to “ putting water in a bucket that has holes. ” Georgieva also argued that Egypt’s multiple exchange rate policy has created a system that only benefits the privileged.