There is no doubt that the decisions that have been taken regarding the exchange rate against the dollar will contribute significantly during the coming period to strengthening the Egyptian economy through several directions.
The first trend is the export trend. With the decline in the value of the pound against the dollar, the value of exports will increase, and thus the competitiveness of Egyptian exports in foreign markets will increase, in front of world exports, a step that will contribute to a gradual increase in exports, which will improve the trade balance and will reduce the demand for the dollar. .
The second thing is that this new exchange rate, which is expected to gradually stabilize, is expected to contribute to the reconsideration of many importers of importing a large number of goods, and the search for a local alternative to them, especially since the imported goods will be of a high value, and therefore you may not find The appropriate “customer” for it in the Egyptian market, which supports small and medium enterprises and supports the industry internally, largely and gradually.
However, this requires that importers themselves tend to search for local factories that provide them with products that are imported from abroad, so that they are a local alternative and of high quality.
The selection of products that are imported from abroad will gradually reduce the demand for the dollar, which will gradually contribute to increasing the cash reserve and gradually contribute to the stability of markets during the next stage.
It is important for there to be serious discussions in the Federation of Egyptian Industries and the General Federation of Chambers of Commerce to search for a local alternative to most imported products, which will finally solve the problem of demand for the dollar, a role that the private sector must play in supporting the national economy during the next stage.