Hisham Ezz Al-Arab, the assistant to the governor of the Central Bank of Egypt, claimed that the dollar exchange rate would not matter if Egypt could lower inflation by 3%.
Amr Adib, the adviser to the governor of the Central Bank of Egypt, told the story programme on Sunday night that in order to make the most of the government’s assets and its capacity to produce revenues that will help reduce the level of debt, it is important to consider Egypt’s assets as well as its liabilities.
“Every 10% increase in the exchange rate of the dollar against the pound equates to an increase in inflation in Egypt of 4%, whereas the inflation lowers by 0. 5% when the dollar falls 10% against the pound,” the adviser to the governor of the Central Bank of Egypt stated.
The exchange rate of the dollar against the pound won’t matter if Egypt can reduce inflation to 3%, but as long as Egypt’s inflation rate is higher than the nations we deal with, the exchange rate will be the main concern. Hisham Ezz Al-Arab, Advisor to the Governor of the Central Bank of Egypt, added.
And Abizaid: The high costs of energy, food, and the war in Ukraine are a large part of what’s driving Egypt’s inflationary pressures, as is the fear of the future that’s driving people’s hasty purchases of dollars, which demand a need from their righteousness after 6 months to download the dollar from now!
Media in Egypt as a source.
The sole method to “target the value of the dollar against the pound” is revealed by the Central Bank of Egypt.
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