2023-06-13 21:45:49
The whole world knows that the US Federal Reserve is in today’s meeting to decide the interest rate in the coming period, after raising it at its previous meeting to its highest level in 16 years… Ok, why is the whole world holding its breath when the Fed meets, and why is it shocked when it raises the interest rate and how does the decision affect it? It crosses the ocean in order to affect the economies of all countries, especially developing countries like Egypt.. We will see together why Egypt will be affected.
break
In the economy, any increase in the US interest rate due to many problems for developing countries, because in short, it causes a rapid flight of investment from you, and the money goes to invest in US bonds because of the high interest rate, which means a lot of profits for the investor and the hot money around the world, instead of investing in other countries and also raising The federal interest rate causes a shortage of dollar and foreign currency liquidity in some developing countries, such as the crisis we have, despite the different reasons, but a large part of the dollars left Egypt and invested in American bonds after a series of interest hikes and monetary tightening from the Fed in recent meetings.
I mean, most experts confirm that raising the US interest rate increases the possibility of indirect investments leaving developing countries like Egypt, in addition to the difficulty of attracting other or new indirect investments.
The most dangerous and difficult need if the federal government raises the interest rate is the high cost of debt in dollars and the high prices of imported goods, and the two things Egypt suffers greatly from because of the bill of debt installments and the large increase in the import bill, and this will deliver us along to a new jump in inflation, and we are not deficient, and the May numbers are sufficient and what I counted on The inflation rate is 40%, and if there is a turmoil in the dollar market, of course, its impact will reach the gold markets in Egypt, and we know what kind of crisis our people are taking place on gold, as it happened a lot before, and with the high demand, prices will increase again after stability.
We are not exaggerating if we say that Egypt is one of the countries in the world that is most affected by the rise in interest rates on the dollar, for all the reasons we have mentioned.
Although there are many expectations that the federal government will install the interest tomorrow or raise it slightly, there is still fear in emerging countries because raising it really causes suffering and comes at the expense of people’s lives and the difficult living bill.
1686723959
#expected #American #Federal #strike #Egypt. #happen #market #today