This chapter presents an in-depth analysis of the evolution and interlinkages between monetary and exchange rate policies in Egypt across five decades starting from the launch of the Economic Reform Structural Adjustment Program (ERSAP) at the beginning of the 1990s passing by the issuing of Law 88 for the year 2003 which explicitly put price stability as its policy objective and the reference to the aim of adopting inflation targeting (IT) once prerequisites were fulfilled until the recent  reform program in 2016. Correspondingly, a modernized approach to monetary policy and a more liberalized exchange rate regime were announced. These reform efforts helped build financial resilience against the pandemic. Nevertheless, external imbalances reappeared in the post-pandemic era.