What are likely scenarios for Egypt’s ongoing IMF loan deal amid war in Gaza?

During COP28, which concluded last week in UAE, the IMF managing director stated that the deal could witness progress soon, expecting the fund to raise financing for Egypt amid the ongoing war in Gaza.

The fund is currently discussing with Egyptian authorities providing additional financing to ensure the successful implementation of the policy package to help it withstand the repercussions of the recent conflict in the Middle East, the IMF’s Director of Strategic Communications (COM) Julie Kozack said.

Moreover, the current $3 billion loan may rise significantly, potentially reaching $12 billion soon amid the current geopolitical challenges in the Middle East as a result of the war in Gaza, Ahmed El-Sayed, an economist and financing expert, explained.

El-Sayed also emphasized that the Egyptian pound no longer requires an immediate devaluation. “If any devaluation does occur, it is expected to be partial, with the currency value remaining within the range of EGP 31/$1,” he added.