Egyptian economist Hany Genena commented on the expected fate of the Egyptian pound against the dollar as Egypt moves closer to the down payment on an International Monetary Fund loan.
Genena said in statements to RT that he prefers to launch a depreciation of the pound rather than a placement, stressing that the Egyptian government was trying in last October’s placement not to weaken the value of the pound. The Egyptian pound is larger, and this is incompatible, from my point of view, with the requirements of the International Monetary Fund.
He explained that the International Monetary Fund has been calling on Egypt since 2016 for a full placement, not a partial placement, which I think he is insisting on this time.
He added that about a month had passed since the partial offering in October last year, and the name of Egypt had not been included in either the list or the meeting schedule, indicating that, as a result of severe hard currency shortages, a number of producers were in the process of closing or reducing employment, and the prices of some basic food commodities, such as rice and sugar, have risen.
And he continued, “So I think the central bank can take one more step to completely tighten their hands on the exchange rate, and with this measure, the interest rate can be raised very strongly, and it can be 25%, and this is the a procedure that may be accompanied by a change in the pricing mechanism for petroleum products from three months to a month.” will be full of events.
Cairo – Nasser Hatem