Egypt is preparing to receive foreign currency inflows exceeding $60 billion

The arteries of the Egyptian economy are preparing to receive the largest foreign currency inflows, with a value exceeding the $60 billion barrier. Informed sources told Youm7 that the foreign currency inflows will support the country’s foreign currency reserves. Foreign exchange At the Central Bank of Egypt, which currently records $35.3 billion, indicating that these resources in foreign currency will enhance liquidity in foreign exchange and represents a very positive and optimistic trend regarding the stability of the exchange market and the position of the local currency against foreign currencies.

This liquidity is represented by $8 billion from the International Monetary Fund, $1.2 billion from the International Monetary Fund’s Sustainability Facility, $24 billion from the remaining part of the Ras al-Hikma deal, $6 billion from the remaining part of the UAE deposit in the Central Bank of Egypt, $8 billion from The European Union, $6 billion from the World Bank, and $6.5 billion in total sales of state assets until the end of this year, which constitutes the largest foreign exchange inflow to Egypt during the last ten years.

The dollar flows come within the framework of the Egyptian government’s endeavor to attract foreign direct investment flows worth $100 billion over 6 years, and are in addition to the measures taken by the Central Bank regarding unifying the exchange rate and approving monetary policies that allow setting the exchange rate according to market mechanisms, which contribute to covering the market’s needs for… Foreign exchange and inflationary pressures are besieged, which contributes to a decline in inflation rates to single levels in the short term, and indicates an expected decline in prices.

This trend supports the economic reform plans that the state intends to approve during the next stage to provide internal sources of income from foreign currencies that the state needs in the future in the medium and long term.

The Monetary Policy Committee decided, in its extraordinary meeting on March 6, to raise the overnight deposit and lending interest rates and the Central Bank’s main operation rate by 600 basis points to reach 27.25%, 28.25% and 27.75%, respectively. The credit and discount rates were also raised by 600 basis points to reach 27.75%.