Experts: Flotation put Egypt on right track globally

CAIRO – 29 November 2017: The flotation of the Egyptian pound put Egypt on the right track globally, said Omar Mohanna, chairman of the Egypt-US Business Council (EUSBC), on Tuesday during a discussion session organized by the Egyptian Center for Economic Studies (ECES).

ECES, chaired by Mohanna, hosted a number of key economic experts to discuss the conclusions of the economic reform program since its launch a year ago.

“The reform program is an attempt to create balance in the Egyptian market,” said former Finance Minister Ahmed Galal during his speech.
“The program has two negative impacts; first is the high rate of inflation with income still fixed, and the second is the program is not able to create more jobs,” Galal added.

He pointed out that there are a string of files the current government needs to focus on, including good education, upgrading healthcare and controling the government debt.

Hany Genina, deputy governor of the Central Bank of Egypt (CBE), said that a lot of countries had experienced very tough situations even worse than Egypt’s; however, Egypt could handle its difficult times and be on the right track.

Genina affirmed that the CBE’s decision to increase the interest rate serves as a line of defense after the pound flotation, adding that raising the interest rate is a must for any country that decides to float its currency.