Egypt’s reform program is off to a good start and the transition to a flexible exchange rate went smoothly, said International Monetary Fund (IMF) First Deputy Managing Director and Acting Chair David Lipton.
The parallel market has virtually disappeared and central bank reserves have increased significantly, Lipton added in a statement published on the website of the IMF on Friday.
He stated that the energy subsidy reform, wage restraint, and the new VAT have all contributed to reducing the fiscal deficit and helped free up space for social spending to support the poor. 
Market confidence is returning and capital flows are increasing. These augur well for future growth, the IMF official said, adding that the authorities’ immediate priority is to reduce inflation, which poses a risk to macroeconomic stability and hurts the poor. 
He went on to say that significant progress has been made on structural reforms, including the adoption on industrial licensing law, a new investment law, besides a new insolvency law in the Parliament.

Source: Mena