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How does Egypt control the dollar crisis? The expert revealed important details to RT

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Egyptian economist Mostafa Badra has offered the Egyptian government the best solution to control the dollar crisis the country is suffering from.

In statements to RT, Badra said that at the outset, the role of Egypt or the situation with Egypt should not be alienated or excluded from the global issue, which, unfortunately, escalated in 2022 due to high interest rates in world markets and the departure of many investments in the world. especially the so-called hot money or investment in Treasury bills and its entry into developed markets, especially the American market, which caused a liquidity crisis in foreign exchange within the Egyptian state.

The Egyptian economist pointed out that the situation is clear in many countries of the world, the pattern that we see, or the situation that we see in Egypt, is a recurring case for the whole world, since Egypt has a special nature because it carried out of the economic reform program with 2016 and is collaborating with the World Bank and the International Monetary Fund. Since this year, the scenario has been known and witnessed by the world that Egypt is trying to restore the economy, and in addition, this is monetary policy.

Badra pointed out that there is an exploitation of foreign currency in the black market, because as a result of the crisis in the foreign exchange market, things worsened and the case increased the burden on the Egyptian state, and Egypt applied to the International Monetary Fund for the third time in order to be able to improve the situation for monetary credit policy, because it was necessary for there to be a so-called unification of the exchange rate within the Egyptian state, which reflects economic affairs, just as the whole world knows that in all countries there are not many exchange rates within the state, so the Egyptian state faced with the black market and fought against it and corrected these consequences, laying the foundations for work during 2022 and from there. Strict measures were introduced in 2023. taken to improve the throughput of the exchange rate.

Mostafa Badra noted that the first of these procedures is to create many frameworks to attract many investors, since Egypt issued a certificate for 25%, as well as another certificate for 22.5%, so that it does not go beyond the transfers of Egyptians abroad. tourism or the like, so this business required that there was a confrontation with the black market, and the rate was raised, then the state came to the point that the matter was balanced after satisfying the needs of imports from abroad, which accumulated inside the ports, and some of them were released by about eight or nine billion dollars, and the matter still requires an increase in the injection of foreign exchange.

According to the Egyptian expert, the Ministry of Finance quickly reviewed and formed committees with the intervention of the Egyptian President and Prime Minister, and created conditions for investors without restrictions, including a gold license or a review of requirements to increase investment. and accelerating investment aspects.

Badra continued: “All these questions reflect the fact that the state is again restructuring economic affairs and demanding that there be strict control within the government and within the state over the exchange of foreign currencies and how to dispose of them. Therefore, the government approved the rationalization and non-spending of funds, and the Prime Minister decided not to spend foreign exchange for all state bodies and ministries, except for emergency, until the end of fiscal year 2023.

Source: RT

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