The National Bank of Kuwait (NBK) believes Egypt would remain a strategic market for its activities and optimistic over the Egyptian economy’s potential and promise.
NBK CEO Sheikha Al-Bahar told a seminar organized Monday night that amid the tough challenges facing Egypt at present, the bond certificate in US dollar is a wise tool to help citizens and investors support the first Arab economy. Recalling the effects of the political instability on the economy, she stressed there is a shared responsibility to support the Egyptian economy across the Arab world.
Egyptian Ambassador Abdulkerim Suleiman for his part noted that the state of affairs in post-revolution Egypt means the country’s economy’s stability and strength relies on Egyptians themselves, whether at home or abroad, in view of exodus of foreign investment. Purchasing the dollar bond certificate had contributed to increasing remittances by USD 100 million, the diplomat said, urging his countrymen in Kuwait to buy the bonds.
Deputy governor of the Egyptian Central Bank Nidal Amre meanwhile said the bank’s not allowing speculation in dollar in the market during the revolution was a main factor behind the Egyptian pound’s keeping its limited margin against the dollar.
In 1990, he said, Egypt had no hard currency reserves and was weighed down by USD 55 billion in debt. The foreign currency reserves reached USD 7 billion in 2004, he continued.
He said that though this sum came down during the revolution, it went up again for the first time since the revolution during April, putting on USD 100 million after slumps of almost USD 2 billion a month.
The main hurdle for the economy to overcome at present, he stressed, is political instability. Investors had shied away from meetings with the central bank throughout the revolution and till the end of the recent elections. Only then did they seek meetings in an unprecedented influx, KUNA reported.
