In an exclusive interview with RT, political economy researcher Samar Adel spoke about the surprises awaiting the Egyptian pound.
Samar Adel confirmed that the Egyptian pound is expected to depreciate at a rate of 15 to 17% due to the conditions the world is facing, including the Ukrainian crisis, and the global uncertainty that has had a negative impact on the position of the Egyptian pound.
The political economy researcher explained in an exclusive statement to RT that many factors contributed to the devaluation of the Egyptian pound, including the dollar deficit, the withdrawal of hot money from Egypt, a high percentage of imports. which is about 70%.
At the same time, she stressed that there is a glimmer of hope that over the next few periods, the situation will stabilize regarding the status of the Egyptian pound due to an increase in Egyptian transfers abroad, the completion of the acquisition process and the completion of transactions. which will contribute to the increase in the volume of the dollar in the Egyptian economy and the indirect economy. Through hot money, all this will help in overcoming the crisis of the depreciation of the pound.
She pointed out that monetary policy has put a certain limit on the pound, noting that what is happening in the foreign exchange market is a “managed placement” process, and that this type of placement has been seen in Egypt for some time, so when the value of the pound reaches a certain limit, the stabilization process starts.
She noted that the issue of savings certificates with an interest rate of 25% is aimed at curbing inflation, as the main goal is to stabilize prices and inflation.
Political economy researcher Samar Adel explained that the Egyptian economy needs steps related to the Egyptian economic structure in order to transform it from a “semi-rentier” structure into an “industrial production” structure, which does not always achieve self-sufficiency. needs, but at least in strategic goods, emphasizing that the industrial productivity structure would allow the Egyptian economy to withstand shocks, thereby maintaining the value of the Egyptian currency.