Fouad said during an interview with the “Hadith Al-Qahira” program on “Cairo and the People” channel on Wednesday, “Since the liberalization of the exchange rate last March, $94 billion has entered Egypt, including $39 billion in hot money and $24 billion in cash for the Ras Al-Hikma deal, in addition to an improvement in the flow of Egyptians abroad to 7%.”
The economic expert added that during that period, Egypt obtained $1.6 billion from the International Monetary Fund and $3 million in other loans, in addition to the Egyptian state’s natural dollar resources estimated at $20 billion from the Suez Canal, tourism and exports, bringing the total to $94 billion.
Fouad revealed the reason behind Egypt’s attraction of hot money, which was estimated at $39 billion, explaining that the owners of hot money were expecting a reduction in interest rates at the US Federal Reserve and saw promising investment opportunities in Egypt.
He explained that these flows increased the net foreign assets in banks by $40 billion, in addition to an $11 billion increase in cash reserves, as the Egyptian cash reserves were $35.5 billion and became $46.5 billion, and the state spent $43 billion on imports and debt repayment.
He pointed out that the US Federal Reserve’s decision to reduce interest rates was a great joy for all developing countries because it is a cash liquidity and helps them obtain a large amount of hot money.
He stated that the US Federal Reserve’s decision to reduce interest rates pushes hot money towards Middle Eastern countries, pointing out that there is a plan for the Egyptian state that focuses on attracting hot money.
Source: RT
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2024-09-26 00:01:55
