(January, 2001)
This paper explains how the Egyptian monetary policy during the first half of the 1990s reduced macroeconomic imbalances and achieved economic stabilization. It also evaluates the recent pressures on the external position and the policy responses. On the basis of these findings, the paper identifies the challenges ahead, and takes a cursory look at ongoing efforts to revamp the instruments of monetary policy and modernize the institutional framework of the financial system.