Egyptian economist Ahmed Khattab confirmed that there are several factors that determine the rise in the price of the dollar against the Egyptian pound, after the decision of the Central Bank to raise interest rates.
In statements to RT, he pointed out that there are several factors that determine the growth of the exchange rate, primarily an increase in the demand for currency to be imported from abroad, indicating that in the event of a reverse event, the volume of Egyptian exports abroad will increase, monetary remittances of Egyptians abroad, the volume of tourism will increase. Visitors to Egypt, all this leads to a decrease in the price of the dollar against the Egyptian pound.
He added that there is no reason for the price of gold and dollars to rise, except in the realm of trade, because many citizens seek to freeze their money in dollars and gold, despite the fact that the US economy is gradually collapsing and the vision is unclear who will rule the world in 2025 and 2026.
He stressed that he did not trust the US dollar and that all countries should switch to the Chinese yuan or the Russian ruble and all other currencies.
Khattab stressed that the decision of the Monetary Policy Committee of the Central Bank of Egypt has clear goals, which are primarily to contain inflation, which reached 40 percent during January and February, while continuing to increase inflation.
The Egyptian expert pointed out that the interest rate hike could not be due to the change in the Egyptian pound against the dollar, noting that the decision of the Central Bank of Egypt is aimed at reducing liquidity in the hands of consumers so that there will be some reluctance to buy some goods and demand for goods will decrease. leading to lower prices.
The economist added that the decision of the Central Bank will lead to a reduction in trade volumes, because some raw materials coming from abroad may force companies to take out loans to import them, and therefore companies will reduce their production, reduce borrowing at high interest rates. leading to industrial and commercial decline.
He pointed out that the real estate investment sector will also suffer from the decision of the Central Bank. Because many citizens tend to keep their money in banks to take advantage of high interest rates; Especially in light of the increase in supply in the real estate sector, which will reduce the real estate sector with an increase in supply, which may lead to lower property prices.
He explained that the agricultural sector will not suffer, but may show greater growth, and that the tourism sector will also not suffer from the decision of the Central Bank.
Source: RT