Egyptian MP Mahmoud al-Saeedi, a member of the Economic Committee in the House of Representatives, predicted that the US dollar exchange rate against the Egyptian pound will see a significant decline in the coming period, and assured Egypt is simply going through a passing crisis.
Saeedi referred to current efforts made by the Egyptian state in this regard, represented by increased foreign investment flows to Egypt, in addition to the strategies the state has followed for economic reform, reaching self-sufficiency, maximizing local products, and increasing exports to relieve pressure on dollar.
Alleviating foreign currency pressure
Saeedi noted that Egypt’s accession to the BRICS group would bring great benefits to the Egyptian economy.
This in turn would facilitate exchange between member states through local currencies, and reduce the pressure on foreign currency, amid a great desire from coalition members to overthrow the dominance of the dollar in their transactions, and establish a new economic system.
Egypt boasts a large market, he said, which ensures high levels of demand for goods and stimulates the movement of exports to and from the group’s countries.
He added that China is the largest exporter to the Egyptian state, which contributes to alleviating foreign currency pressure.
Saeedi explained that the Egyptian government will take a package of measures – during the coming period – that will contribute to pumping the dollar by increasing investments, out of the state’s interest in improving the investment climate and attracting more local and foreign investments into Egypt.
The government is eager to motivate investors and facilitate procedures for them, he said, and directives are in place in addition to giving priority to the local product in government contracts to increase exports – particularly in light of Egypt’s population strength, opening of new tourist markets, and expanding the establishment of international partnerships to promote the Egyptian tourist destination.
Gold is a safe haven
Representative Ahmed Diab, a member of the Economic Committee in the House of Representatives, explained that gold is at the forefront of safe haven assets during periods of crises, in light of economic hardships, wave of inflation and its accompanying repercussions.
Gold is the safest metal and allows investors to preserve their wealth during tough times because it has strong properties, he explained, namely its ability to retain its value and its resistance to various factors and circumstances.
Edited translation from Al-Masry Al-Youm
