Alula: Governor of the Central Bank of Egypt (CBE) Hassan Abdallah participated on Monday, February 9, 2026, in the second edition of the AlUla Conference on Emerging Market Economies, organized by the Saudi Ministry of Finance in partnership with the International Monetary Fund (IMF). The conference gathered central bank governors, finance ministers, senior officials from international financial institutions, and international experts to discuss challenges and opportunities facing emerging market economies amid global economic transformations.
According to State Information Service Egypt, the conference, held under the theme 'Aligning Economic Policies to Support Emerging Market Economies amid the Challenges of Global Trade and Monetary Shifts', addressed key issues related to monetary and financial systems, international trade developments, and macroeconomic policy. During the conference, Governor Hassan Abdallah participated in two main sessions. In the session titled 'Monetary Policy in the Face of Structural Shifts in the Global Economy', he reviewed Egypt's economic reform programme launched in March 2024, highlighting the adoption of an inflation-targeting framework and the implementation of a fully flexible exchange rate regime. He explained that this shift represents a fundamental transformation in the role of the Central Bank, focusing on building a strong monetary framework that allows market mechanisms to determine the exchange rate based on supply and demand.
Governor Abdallah noted that these measures have contributed to reducing inflation from around 40% to nearly 12%, thereby strengthening confidence in the Egyptian economy. He stressed the importance of considering global developments when formulating monetary policy and highlighted the need to build precautionary reserves during periods of stability. He also called for enhanced coordination and communication between central banks, particularly between emerging and advanced economies, as well as the development of contingency plans for the banking sector.
He further reviewed the CBE's efforts to establish a Centre for Data Science and Advanced Analytics to support real-time forecasting and provide forward-looking indicators that enhance monetary policy decision-making. The Governor pointed to the continuous improvement in Egypt's economic performance indicators, including the recovery of Suez Canal revenues, record performance in the tourism sector, and improved private sector activity, with the Purchasing Managers' Index (PMI) rising above the 50-point threshold, indicating expansion and growth.
In a second session titled 'Strengthening Global Financial Safety Nets', the Governor highlighted the importance of such mechanisms in enhancing countries' readiness to face crises. He emphasized that the quality of reserve assets is as crucial as their size, noting that stress tests and scenario analysis are essential in determining appropriate reserve levels. He stated that Egypt's net international reserves reached a historic USD 52.6 billion in January 2026, covering 6.3 months of imports and equivalent to approximately 158% of short-term external debt. He affirmed the Central Bank's commitment to improving the quality and structure of reserves alongside their growth.
On the sidelines of the conference, Governor Abdallah held bilateral meetings with senior officials from international financial institutions and fellow central bank governors to exchange views on global economic risks and explore avenues for enhanced fiscal and monetary coordination.