The Governor of the Central Bank of Egypt, Tarek Amer, said today, Wednesday, that the central bank corrected the exchange rate last March, which resulted in an increase in foreign exchange flows by 30% during the same month.
. added Tariq Amer In his speech during the conference of the Union of Arab Banks held in Cairo, under the title “The Repercussions of the International Crisis and Its Impact on the Economic Conditions in the Arab Region,” that investment certificates were issued with a return of 18%, so that the holder of the Egyptian pound would be the winner.
The CBE governor explained that there is protection for the industrial sector through the lending initiative with a return of 8%, and it was protected from the inflationary wave through energy subsidies.
Tariq Amer said that raising interest rates at specific times to confront inflation was necessary, because the task of central banks is to address the effects of inflation and bear its temporary negative repercussions.
He stressed that the Central Bank maintained the stability of the exchange rate after the Corona pandemic to avoid an inflationary wave, despite the exit of 15 billion dollars of foreign investments during that period, and the results of the unconventional policy of the Central Bank after Corona made it at the forefront of the best central banks in dealing with the crisis.
He added that the Central Bank was able, through its policy, to control inflation until the Russian war, thanks to the independence of the Central Bank.
Tariq Amer indicated that international reserves are considered an insurance policy in any unfavorable international circumstances.
The Governor of the Central Bank of Egypt also said that Arab banks were able to play their role in maintaining monetary stability and reducing inflation rates during the past years, in addition to their traditional role in supporting investment and managing foreign trade operations.
He pointed out that 85% of Egypt’s foreign obligations were paid in 2021, noting that raising US interest rates has no effect on Egypt’s financial and economic conditions.
He added that digital banks will start operating in Egypt within weeks.
He explained that Egypt’s negotiations with the International Monetary Fund are going well, and Amer denied the existence of difficult conditions for negotiations with the IMF or any matters related to the citizen.
He pointed out that the value of the financing from the IMF was not agreed upon, because Egypt took a large share, and it is likely that the value of the loan would not be large, and the Fund came to benefit from its expertise in structural reforms.
On the exchange rate flexibility in the Egyptian market, Amer said, “The Central Bank intervened during the Corona period and prevented flexibility in order to protect the country from price shocks, and we reduced the reserve and used it, then the reserve returned and rose.”