Economic analyst Hanan Ramses considered that Egypt’s resources and capabilities were greatly affected by conflicting internal economic decisions, the fluctuation of the Arab position, and the increase in the number of arrivals to Egypt due to the wars in their countries.
Ramses indicated, in an interview with RT, that after reaching an Egyptian-Arab understanding regarding Gulf investments in Egypt, there was a semi-stop in this file, which foreshadowed more dollar scarcity after Egypt was counting on the flow of this currency.
Also, the state’s failure to complete the offerings program and activate the “state ownership policy document” mechanism had an impact on the successive pressures of the International Monetary Fund.
Ramses also indicated that there is more than one price for the dollar, from an official rate in the bank to a black market rate, as well as to the fact that the price of gold is denominated in dollars, and this very ambiguous scene led to the cessation of investments, “so any investor wants to know at what price he will invest and how to protect his profits.”
The analyst added that Egypt cannot follow a flexible price for the dollar in the current period due to speculation and because of trade in the dollar, and the impact of the flexibility of the exchange rate in light of the high demand and low supply, on the rise in prices without setting a ceiling for those prices.
According to Ramses, this actually happened in the previous period. When the state launched the price of the dollar for flexibility, the solicitation price on which offers flowed was supposed to be the price of 30 pounds per dollar, but the opposite happened, as speculation increased and the price of the dollar increased in the parallel market and the price of Dollar in futures contracts.
Of course, the credit ratings have worsened and are expected to get worse. Despite Egypt’s announcement over and over again of its commitment to paying its obligations, confidence in the Egyptian economy and its ability to withstand the current challenges has become a matter of debate and debate, according to the analyst.
And Ramses considered that the state must, in order to be able to complete its development plans, make a rapid amendment in its plans and targets, and a comprehensive change in those in charge of revitalizing the economic file, as well as heading towards more tourism activation and investment in the east.
This article was originally published by RT.