Dr. Wafaa Ali, Professor of Economics and Energy, said, “There is no doubt that the Monetary Policy Committee’s decisions today reflect the Central Bank’s commitment to achieving balance in the markets by ensuring the flexibility of supply and demand. Today, the Bank took exceptional decisions that included raising the interest rate by 200 basis points, gradually canceling documentary credits until the end of the year and working on the collection documents system.” With determining the exchange rate of the pound according to the mechanisms of supply and demand to ensure the flexibility of the situation with an indicator of the Egyptian pound compared to other currencies, not just the dollar.
Dr. Wafaa Ali added to “The Seventh Day”, “The Central Bank has sought to take reform measures to ensure macroeconomic stability and achieve sustainable and comprehensive growth, which means a complete liberation of the pound and leaving its price to supply and demand, and this does not mean that the dollar will continue to rise without stopping, but there are many factors that will lead To rise and fall until the conditions of the pound stabilize in the market and the fair value is achieved.
And the professor of economics and energy continued, that at the beginning of next week, when the markets absorb the shock of the dollar’s rise and its true value appears, and the central bank launches an indicator to measure the performance of the local currency against the foreign currencies that it decides to put on the index, the decisions of the central bank came in line with the recommendations of the economic conference and with the liberalization of the price The exchange rate had to be raised simultaneously to absorb the inflationary effects.
Dr. Wafaa Ali stated, that the decisions to liberalize the exchange rate will certainly improve the investment climate and exports and increase the remittances of Egyptians as well as tourism with the improvement of markets with the return of the import system with collection documents and its consequences from the availability of goods as well. Banks have issued investment certificates with large returns to limit the effects of the decision and with the coming weeks Prices will stabilize at their levels that will achieve efficiency for the Egyptian economy and give an indication to investors of the flexibility of the exchange rate. It will also affect the flows of the Egyptian Stock Exchange in the coming days. Today’s transactions and their rises give an indication of the occurrence of this positive return.