Hassan Abdalla, governor of Egypt's Central Bank, joined the second AlUla Conference for Emerging Market Economies, stressing that the bank's role is not to push the currency up or down but to build a resilient policy framework. He outlined Egypt's economic reform program launched in March 2024, noting inflation's drop from around 40% to nearly 12%. He also highlighted improvements in key economic indicators amid global challenges.
Hassan Abdalla, governor of the Central Bank of Egypt (CBE), took part in the second AlUla Conference for Emerging Market Economies, organized by the Saudi Ministry of Finance in partnership with the International Monetary Fund (IMF). The event drew Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan, IMF Managing Director Kristalina Georgieva, central bank governors, finance ministers, and global economic experts.
Held under the theme "Aligning Economic Policies to Support Emerging Market Economies amid Global Trade Challenges and Monetary Transformations," the conference addressed rapid global economic shifts and opportunities for emerging markets in trade, finance, and policymaking. In the session "Monetary Policy amid Structural Shifts in the Global Economy," Abdalla reviewed Egypt's economic reform program started in March 2024, which introduced inflation targeting and a fully flexible exchange rate regime. He described this as a core change in Egypt's monetary framework, shifting the CBE's focus from targeting a specific exchange rate to building a strong policy system.
Abdalla emphasized that "the CBE’s role is not to push the currency up or down, but to establish a strong and resilient system that allows the exchange rate to respond to supply and demand forces." He noted that state measures had successfully lowered inflation from about 40% to nearly 12%, boosting confidence in the economy. He urged incorporating global developments into policy, building precautionary reserves during stable times, and improving communication among central banks, especially between emerging and advanced economies.
The governor highlighted the CBE's work on a Data Science and Advanced Analytics Centre, plus developing nowcasting tools and forward-looking indicators to better capture real-time conditions and inform decisions. He pointed to recovering Suez Canal revenues after a downturn, record tourism in visitors and spending, and the Purchasing Managers’ Index (PMI) exceeding 50 points, indicating private sector expansion. Abdalla stated the Egyptian economy holds promising opportunities that outweigh risks, despite external shocks.
In another session, "Strengthening the Global Financial Safety Net," he stressed the importance of reserve quality alongside size, using stress tests to tailor levels to specific risks. Egypt's net international reserves hit a record $52.6 billion in January 2026, covering 6.3 months of imports and 158% of short-term external debt. On the sidelines, Abdalla held bilateral meetings with international officials to discuss global risks and policy coordination.