Mohamed El-Dib, chairman of National Société Générale Bank (NSGB), expected the current economic crisis to end peacefully without leaving negative repercussions on economy as long as Egyptians believe that they can solve the crisis.
The sale of NSGB to Qatar National Bank for US$ 2.5 billion and the acquisition of BNP Paribas Egypt by Emirates NBD prove that the Egyptian market is a promising market that attracts new investments, he affirmed.
During a televised interview with CBC’s ‘Hona al Assema’ talk show, El-Dib added that the current dollar shortage is a result of the unjustified demand for dollars. He affirmed that the Central Bank of Egypt (CBE) succeeded in managing the country’s monetary policy since the implementation of interbank mechanism in 2004. The rumors circulated about the country’s possible bankruptcy and the unjustified demand for dollar have led to the recent crisis, he noted.
“The FX auction launched recently by CBE will eliminate currency speculation gradually and will rebalance the foreign exchange market,” he affirmed.
Asked whether banks’ investments in treasury bills affect the volume of funds injected to investment projects, El-Dib confirmed that banks invest their surplus funds in government debt instruments and do not abandon its role as financiers of investment projects, affirming that many banks acquire SME finance units as these enterprises are the backbone of national economy.
