Central Bank Needs Allies

Media personality Lamis El Hadidi said that, despite the Central Bank of Egypt’s effective actions and the exchange rate’s flexibility in coping with foreign investor outflows during the current crisis, the bank cannot manage the economy on its own. This requires coordination between monetary and fiscal policy and the government. She explained that the shortage of foreign currency remains the biggest challenge, despite improvements in remittances from Egyptians abroad, tourism and exports, as well as the gradual recovery of the Suez Canal. As a result, the economy remains vulnerable to shocks and the impact of hot money. She called for a comprehensive approach that includes consolidating the budget, reducing the cost of debt, addressing the energy gap and accelerating the state’s withdrawal from the economy to attract greater private-sector participation.

Size: 120%Text Size

Notice: This Is an AI-Generated Summary

Display The Full Article