Floating the Egyptian pound is a necessary decision for Egypt economy
Floating is a necessary decision and came at a good time as responding to the forces of supply and demand in the currency market is one of the most important principles of a free capitalist economy
Ashraf Hagar - • General Topics
.jpeg)
The decision to float is sound and timely
CopyAshraf Hajar, director of the Egypt and Middle East Center for Financial and Economic Studies, said that floating is a necessary decision and came at a good time as responding to the forces of supply and demand in the currency market is one of the most important principles of a free capitalist economy.
He added, The Egypt and Middle East Center for Financial and Economic Studies believes that the timing chosen by the government is excellent, as it has anticipated the time when it has a balance of foreign reserves that enables it to maneuver with real demand forces such as real import orders and false demand forces based on speculation and barter for the people's sustenance.
He pointed out that a state of hedging because of the Egyptian market since 6 months for fear of side effects, but it is a necessary and sound decision.
Hajar explained that floating means liberalizing the exchange rate of foreign currencies against the local currency (Egyptian pound) as a result of supply and demand for foreign currency and its reserve balance in the Central Bank.
He said: We expect the price of the dollar to rise by a reasonable percentage and then decline again under the control of the Central Bank of Egypt, despite the difficulty of predicting the fair rate that the price of the pound against the dollar can reach in light of the intertwining of economic events.
Article on news link:
https://www.almasryalyoum.com/news/details/3116368