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.