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The exchange rate.. Fakhri Al-Feki explains the decisions of the Central Bank and their relationship to the

01:23 PM

Thursday 27 October 2022

Books – Mohamed Emara:

Dr. Fakhri El-Feki, Chairman of the Parliament’s Plan and Budget Committee, said that the measures taken by the Central Bank, today, Thursday, by raising interest rates and liberalizing the exchange rate, are related to the International Monetary Fund loan, explaining that the exchange rate was one of the pending matters to obtain the loan.

Al-Fiqi added, in exclusive statements to Masrawy, today, Thursday, that the decisions taken by the government yesterday regarding social protection, which cost the state 67 billion pounds, were necessary because the continuation of high inflation may lead to societal tension.

The head of the Parliament’s Plan and Budget Committee stated that the Minister of Finance announced in the House of Representatives the allocation of 130 billion pounds as an emergency reserve for the Russian-Ukrainian crisis, and 100 billion pounds before that due to the Corona crisis.

Al-Fiqi pointed out that the monetary policy aims to liberalize the exchange rate and curb inflation by raising interest rates and issuing investment certificates to attract liquidity.

The head of the committee added: “The IMF loan is important and is considered a success certificate for the Egyptian economy and gives investors, whether foreign or Arab, confidence to enter the Egyptian market because there is a unified exchange rate.”

El-Feky expected that Egypt would obtain an IMF loan soon, explaining that Egypt was aiming to obtain $12 billion in financing, but the Prime Minister announced today a financing agreement with the Fund that includes $9 billion.

Al-Fiqi said that the government implemented the recommendations issued by the economic conference after the package of social protection measures announced by the Prime Minister.

He added: There are two main problems, the first is related to inflation, and the second is the limited foreign exchange, and inflation has an impact on the living conditions of the majority of more than 70% of the Egyptian people, as the cost of living has become high, especially since most of the people have limited income and a middle class, and this is a danger to the social fabric. .

As for the second crisis, the limited foreign exchange, and with the impact of tourism and the exit of hot money, in addition to the impact of international oil and wheat prices, all these factors in the global crisis had their impact on Egypt in inflation and the limitation of foreign exchange.

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