CAIRO — Declining imports have become a cornerstone of Egypt’s monetary and economic policy. As a result, economic and financial institutions have more trust in Egypt’s ability to pay down the debt it has accumulated since the end of 2016 and early 2017.

In an Oct. 3 report, the credit insurance company Euler Hermes said it considered Egypt better able to settle its debts in light of its economic reform policy and floating the Egyptian pound. With these reforms, the value of the pound dropped while foreign currency rates increased along with the price of imports. The subsequent drop in imports has been accompanied by a decreased trade deficit.

Euler Hermes' estimates have been in line with announcements by Egyptian officials. The General Organization for Export and Import Control, under the Trade and Industry Ministry, issued a report Sept. 23 stating that the country's nonpetroleum imports dropped by 23% between January and July, to $30.3 billion, compared to $39.4 billion during the same period last year.

In a Sept. 28 speech at the Canada-Egypt Business Council forum, held at the Semiramis InterContinental Hotel in Cairo, Trade and Industry Minister Tareq Qabeel said that the trade deficit had dropped in the first six months of 2017 by 50% compared to the same period in 2016. The policy of reducing the deficit has been improving monthly. Qabeel announced in an official statement Sept. 29 that the total trade deficit had dropped by 74% in August 2017, falling to $1.130 billion, compared to $4.367 billion in August 2016.