25 January 2020 07:54 AM

CBE governor: Inflows of dollar to Egypt reach $200bn in 4 years

Sunday، 08 December 2019 - 02:37 PM

Inflows of US dollar to Egypt have amounted to some 200 billion over the past four years, says Tarek Amer.

The governor of the Central Bank of Egypt (CBE), in a speech during the Arab Banking Conference Sunday, attributed that to successful financial and monetary programs applied by Egypt.

The financial policies have helped stabilize the money market and reduce inflation, Amer told the gathering.

Egypt has also issued bonds for 40 years, he added.

Work is also under way to implement a huge project meant to upgrade the industrial sector in the country, the CBE governor said.

Hopefully, the government would continue to support this important sector and provide more tax incentives, Amer added.

The CBE backs initiatives that support the industrial sector, he told the conference, stressing that unity behind the political leadership has helped overcome the financial crisis.

Amer said that political incidents in the region sure affect all the economies, pointing out that what happened in Egypt after 2011 took its toll on the economy.

Investors have turned their back to Egypt and the money market has been disturbed, not to mention increased inflation rates, the CBE governor explained.

Incidents that occurred in 2011 also led to a rise in the budget deficit by 16 percent, Amer said.

"It was a shock to the money market and the financial policies could not cope with it, leading to a decline in monetary reserves and a price hike," the CBE governor added.

Flexible financial policies are important to handle any such crisis, he noted.

Amer proudly announced that Egypt has restored its financial security with huge monetary reserves and declining inflation rates.

He touched upon important financial steps, atop of which the cancellation of all restrictions to capital movement.

MENA

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