Expert in Egypt elaborates to RT on Fitch’s credit rating downgrade for Egypt

Economic analyst Hanan Ramses believed that Egypt’s resources and capabilities were greatly affected by conflicting domestic economic decisions, fluctuations in the position of the Arabs, and an increase in the number of arrivals in Egypt due to wars in their countries.

Ramses pointed out in an interview with RT that after the Egyptian-Arab agreement was reached on Persian Gulf investments in Egypt, there was a half-stop in this file, which foreshadowed an even greater shortage of the dollar after Egypt counted on the inflow of this currency.

In addition, the state’s failure to complete the proposal program and activate the “state ownership political document” mechanism has had the effect of consistent pressure from the International Monetary Fund.

Ramses also pointed out that there is more than one dollar price, from the official bank rate to the black market rate, and that the price of gold is denominated in dollars, and this very ambiguous scene led to the investment being stopped, “so any investor wants to know, at what price he will invest money and how to protect his profits.

The analyst added that Egypt is unable to follow the flexible price of the dollar in the current period due to speculation and due to dollar trading, as well as the impact of exchange rate flexibility in light of high demand and low supply on price increases without setting a ceiling for these prices.

This actually happened in the previous period, Ramses said. When the state launched the price of the dollar for flexibility, the asking price at which bids flowed should have been £30 per dollar, but the opposite happened as speculation increased and the price of the dollar in the parallel market and dollar price on futures contracts.

Of course, credit ratings have deteriorated and are expected to continue to deteriorate. Despite Egypt’s commitment to repaying its obligations time and time again, confidence in the Egyptian economy and its ability to withstand current challenges has become a matter of debate and discussion, according to the analyst.

And Ramses believed that the state should, in order to be able to complete its development plans, quickly amend its plans and goals, and comprehensively change those responsible for revitalizing the economic file, as well as move towards more tourism. revitalization and investment in the east.

Source: RT