Egyptian President Abdel Fattah Al-Sisi recently held meetings with Prime Minister Mostafa Madbouly, Central Bank of Egypt (CBE) Governor Hassan Abdalla, and Finance Minister Ahmed Kouchouk to review the country's economic performance and monetary policies. During the meetings, Al-Sisi emphasized the need for sustained efforts to bring down inflation and public debt, increase foreign currency inflows, and maintain sufficient foreign exchange reserves. These directives aim to ensure the country's economic stability and growth.
According to CBE Governor Hassan Abdalla, Egypt's foreign exchange reserves have reached a record $57.50 billion at the end of October 2026. Additionally, net foreign assets in the banking sector have risen to their highest level since 2011, although the exact figure was not disclosed. The CBE plans to continue working to curb inflation, preserve financial stability, and strengthen the banking sector while maintaining a flexible exchange-rate regime determined by market mechanisms.
Al-Sisi stressed the importance of continued coordination between the government and the central bank to ensure adequate foreign currency reserves to cover strategic imports of essential goods. The meeting also reviewed the CBE's approval of regulations governing digital financial identity services as part of efforts to accelerate digital transformation and promote financial inclusion. This move is expected to enhance the country's financial sector and promote economic growth.
In a separate meeting with Finance Minister Ahmed Kouchouk, Al-Sisi reviewed fiscal indicators and government plans to reduce public debt, stimulate economic growth, strengthen social protection, and attract greater private-sector investment. The government is working on implementing tax, customs, and real estate incentives, alongside diversifying financing instruments, to create a more attractive environment for private investment.
Kouchouk stated that the government aimed to attract more investors to long-term bonds and was considering debt-for-investment and debt-for-asset swaps to ease financing costs. Al-Sisi directed officials to diversify financing sources and instruments and introduce more flexible options to attract new categories of investors. This move is expected to reduce the state's reliance on domestic and external borrowing and lower dependence on more expensive debt instruments.
Officials also reviewed a study on investing part of the surpluses and funds held by state entities in government securities. This measure could reduce the state budget's reliance on domestic and external borrowing and lower dependence on more expensive debt instruments. Maintaining fiscal surpluses would help reduce public debt and the budget deficit while creating greater fiscal space for spending on health, education, and social protection.
Al-Sisi called for economic reforms to proceed according to clear timetables and measurable indicators to assess government performance. The president's directives emphasize the need for a comprehensive and coordinated approach to address Egypt's economic challenges. By implementing these reforms, the government aims to achieve sustainable economic growth, reduce debt, and improve the standard of living for its citizens.
Key points
- Egypt's foreign exchange reserves have reached a record $57.50 billion at the end of October 2026.
