Deputy Governor of the Central Bank of Egypt, Ramy Abul-Naga, said Egyptian banks have a liquidity surplus of £ 600 billion.
“The central bank has to deal with these surpluses to control inflation,” he added.
Abul-Naga pointed out that if inflation had been abandoned in In an absolute way and not addressed directly, larger crises would have occurred in the medium term, such as an increase in production and industry costs, and consequently a slowdown in the economy due to a drop in demand and a possible recession.
“We raised the interest rate by 300 basis points in a proactive step and we have also increased the minimum reserve ratio from 14% to 18% to control inflation, “said Rami Abul-Naga.
“There are many factors that affect the value of the currency and by the second half of 2023 we will see a decline in inflation rates,” he said.
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