The I.M.F.’s mission chief to Egypt, Ivanna Vladkova Hollar, famous at a information convention that the already-struggling Egyptian financial system had been additional damage by the battle between Israel and Hamas, which has lower into the nation’s important tourism commerce.

On the similar time, income from the Suez Canal dropped by half after Houthi militants, who say they’re performing in solidarity with Palestinians in Gaza, started attacking cargo ships utilizing Pink Sea transport routes.

Prime Minister Mostafa Madbouly of Egypt mentioned that the deal would allow the federal government to safe a further $1.2 billion, above the $8 billion, from the I.M.F.’s environmental suitability fund and would encourage growth companions just like the World Financial institution and the European Union to additionally give Egypt extra loans to assist it attain monetary stability.

Final week, Egypt secured a deal price $35 billion with the United Arab Emirates to develop components of its Mediterranean coast. Egyptian officers celebrated it as the most important overseas direct funding in Egypt’s historical past.

Hours earlier than the I.M.F. deal was introduced, in an try and rein in hovering inflation, Egypt’s Central Financial institution devalued the forex by greater than 35 % — it was the fourth devaluation in two years — and raised rates of interest by 600 foundation factors.

Mr. Madbouly mentioned his authorities and the I.M.F. had reached consensus on the targets of Egypt’s structural reform plan.

“The purpose is to boost overseas forex reserves, decrease the debt burden, assure the stream of overseas direct investments and work in direction of excessive progress charges for the Egyptian financial system,” he mentioned.

The federal government and the financial fund are dedicated to social safety measures for susceptible individuals who can be affected by the reform plans, Mr. Madbouly mentioned.

Over the previous 18 months, a extreme overseas forex scarcity in Egypt, which overwhelmingly depends on imports, has despatched costs — and nervousness concerning the future — off the charts. The price of some fundamental meals gadgets quadrupled, debt burden reached an all-time excessive, and the forex misplaced an enormous portion of its worth, decimating the buying energy of individuals’s incomes and the worth of their life financial savings.

The Central Financial institution Governor, Hassan Abdalla, mentioned the federal government’s medium-term plan aimed to convey down inflation, which hit a record-high of almost 40 % final summer season, to a single digit.

Earlier than the I.M.F. deal, rising financial stress had compelled the federal government to shift ways, together with freezing some pricey megaprojects ordered up by President Abdel Fattah el-Sisi, together with a lavish new capital within the desert.

Further stress got here from the I.M.F., which refused at hand over a lot of the preliminary mortgage till Egypt made good on some financial coverage situations. Amongst them was encouraging private-sector progress by eliminating the aggressive benefits loved by Egypt’s military-owned companies.

Over the previous decade, Egypt’s financial system has been struggling for stability. Many observers say mismanagement, together with overspending on megaprojects and the longstanding overreliance on imports, left Egypt susceptible to successive exterior shocks. Other than the warfare in Gaza, there was the coronavirus pandemic and the warfare in Ukraine, which affected each tourism and important wheat imports.

Mr. el-Sisi has repeatedly defended his authorities’s insurance policies, saying that the 2011 rebellion that toppled President Hosni Mubarak set off lasting financial precarity.

In day by day interactions on the streets of Cairo, nevertheless, and on social media, many blame the president, whom they accuse of spending on vainness initiatives and weakening the financial system to the purpose of undermining Egypt’s affect within the area.

Some consultants say the I.M.F., which has lent Egypt billions of {dollars} since 2016, is a part of the issue.

“They don’t go deep sufficient into what’s taking place within the machine,” mentioned Mohamed Fouad, a monetary marketing consultant and former Egyptian lawmaker.

Mr. Fouad expects that the worldwide lender will now be making extra calculated selections.

“Their largest mistake,” he mentioned, “got here between 2016 and 2020, when everybody was cheering alongside, solely specializing in the macroeconomic side. However the basis was shaky.”

Vivian Yee contributed reporting.