The speech of Engineer Mohamed El Sewedy, President of the Federation of Egyptian Industries, today, during President Abdel Fattah El Sisi’s opening of the Forum and the First International Exhibition for Industry, provoked many positive reactions, especially with regard to the drop in the prices of goods and products within two months.
Al-Suwaidi praised the decisions issued by the government last Thursday, stressing that these decisions are not aimed at increasing prices, but rather an initiative to stabilize and attract investment, and during the coming period prices will decline, and the world is moving forward..
“The message from us, as industrialists, is to reassure people…the coming period will have a decrease in some commodities because things are moving and moving.”
Mohamed Zaki Al-Suwaidi, head of the Federation of Industries, saluted the Governor of the Central Bank, Hassan Abdullah, for the decision to liberalize the exchange rate, saying: “We want to salute Hassan Abdullah, the Governor of the Central Bank, for the decision to liberalize the exchange rate, which is a decision in which there is a great and important challenge, but it gave us Full light and complete satisfaction at work and we had fears“.
Muhammad Zaki Al-Suwaidi added, that this decision absorbed the fears and the goods began to come out, and the view began to remain comfortable, continuing: “The price that happened now does not lead to an increase in the price, and originally there are no goods and there is a deficit. Prices go down and we support the state“.
Between the lines indicates the importance of the measures taken by the Central Bank to eliminate the black market for the dollar during the last period, as products and commodities were priced at more than 23 pounds, and some manufacturers and traders may mislead 30 pounds, and therefore after the decision to liberalize the currency will be completely eliminated. Accordingly, the pricing will be based on the official rate circulating in banks, and therefore it is expected that the prices that were priced at 30 pounds and 23 pounds or on the exchange rate will decrease.
The second matter is that gradually ending the issue of documentary credits within 60 days will contribute to the availability of goods, products and raw materials from abroad, without additional burdens, and thus this will contribute to not raising prices.
The third matter, the government’s decision to quickly remove all goods from customs, will achieve stability in the market within two months, and thus prices will be completely stable with the stability of the dollar exchange rate.
The fourth matter is that the arrival of the IMF loan of $9 billion from the Fund and some other institutions will contribute to increasing the cash reserve balance, easing the demand for the dollar and stabilizing the market.