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Tuesday, 19 March 2019

Egypt's Morsi unfazed by currency fall

Currency levels will stabilise to normal rates, President Morsi assures

Reuters and Ahram Online , Monday 31 Dec 2012
President Morsi
Egypt's President Mohamed Morsi (Photo: Reuters)
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The Egyptian pound's fall to a record low does not worry or scare the government and the situation will "balance out within days", said President Mohamed Morsi during a meeting with Arab journalists on Sunday evening, according to state news agency MENA.

The Central Bank of Egypt 's regular currency auctions, as part of newly announced mechanisms, is expected to curb the demand on the US dollar. 

The head of the Egyptian banking federation described a system of foreign exchange auctions introduced by the Central Bank on Sunday as an "important first step" towards a free floating of the pound.

Tarek Amer, the chairman of the country's largest bank – the state-owned National Bank of Egypt, said the new system was a success on its first day and had "significantly reduced" the demand for dollars.

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Hifzur Rab
01-01-2013 09:28am
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Managing currency and purchasing power
Management of purchasing power provides most important tool for managing currency (exchange rate). Just exchange rate is the one based on purchasing power parity and developing countries have very adverse exchange rate that leads to massive losses to the economy as its exports are effectively very cheap and do not help the economy significantly. Therefore it is necessary that these countries must manage there purchasing power most effectively. It is purchasing power that allows the indigenous enterprises to make profit and pay for national costs (defense, subsidies, infra structure etc.) and the imports must not be allowed to bleed the economy. Imports especially import of luxuries ought to be made so costly that it does not pose any significant pressure on the economy. However, import of machinery and raw materials that assist employment and assist economy to transform its raw materials to more rewarding products for export, should be supported. Supporting export of raw materials etc
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Habeba
31-12-2012 04:51pm
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IMF loan
Orrigional IMF loan was for $4.8bln but in November finance minister said at the time that s weaker EGP meant it would be $4.5bln. The EGP is now waaaay weaker so howuch is this loan actually going to be worth if it ever gets approved
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Habeba
31-12-2012 04:47pm
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Interest
The international loans from Qatar, Turkey etc, is the interest rate on the loan based on credit rating set by Moody's and standard and Poor?? If our credit rating is down rated again what would this mean for how much extra we need to pay back
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Ameen Mahmoud, Suez
31-12-2012 03:48pm
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Realities
I hope we have enough savings to cover gov. salries. Pray for help. IMF insist on increasing taaxes and cutting subsidies before put their money here for investiment. Government lied about tax increase before last vote.
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Kareem Aly, Damanhour
31-12-2012 03:43pm
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Morrish Shareha
I was told that it is the best out of 45 written by Spanish judge to deal with economy. Let us try it.
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Aladdin, Egypt
31-12-2012 03:41pm
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What That Means?
Lower value means more export and less buy power of Egyptian curency for ordinary citizens. Let us go back to work and produce and pray at home.
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