The crisis is not in the jump in the U.S. dollar exchange rate against Egyptian pound but in the collapsing economy and the halt of production, said Hisham Ramez, vice chairman and managing director of Commercial International Bank (CIB) and former deputy governor of the Central Bank of Egypt (CBE).
“We must work on restoring investors’ confidence in Egypt’s economy.” Ramez added
He further noted during a televised interview with Mahmoud Saad’s talk show ‘Akher El-Nahar’ that the increase and decrease in the U.S. dollar’s exchange rate depend on the supply and demand factor.
“The dollar’s hike is not the end of the world. What it really matters is to find the methods for boosting the country’s economy and reactivate production wheel.”
Moreover, Ramez stated that the national currency’s exchange rate depends on the country’s imports and exports. “If the country is unable to produce and incurs a remarkable decline in its exports, the currency will fall with no doubt.”
“That’s why we should work more on boosting the economy and activating production.”
“Countries do not focus on strengthening their currencies as much they take great care over enhancing productivity, exports and competitiveness.”
The CIB Managing Director also noted that stabilizing the currency’s exchange rate should not be the criterion the state would use to reflect its strong economy. He said China for instance, is deliberately following the policy of keeping its currency devalued with a view to facilitating its export-led growth.
“Boosting the currency has points of strength, yet other points of weakness can rise to the surface.”
Ramez concluded by saying officials in Egypt must reassure the citizens that the U.S. dollar’s hike against the national currency is normal and that there is no need to worry.
