The Egyptian government is required to lure additional foreign investments and capital in the medium term if it wants to avert a liquidity crisis as the country’s foreign currency reserves continue to edge down, a number of experts warn.
A few days ago, the country’s finance minister, Hany Kadry Dimian, had said that inbound foreign direct investments are not growing at the aspired-for pace.
Therefore, the Egyptian government is required to act swiftly or it will not be able to carry out ambitious nationwide economic development plans.
In remarks to Youm7, a number of experts stressed the importance of lowering the exchange rate of the Egyptian pound to the US dollar, because it will boost Egyptian exports’ competitiveness and help the country’s hard currency reserves to grow.
In a recent Euromoney conference in Cairo, Hazem Badran, deputy CEO of CI Capital Group, said that Egypt’s economy would have to grapple with a major shortage of liquidity in the short-run, adding that foreign investors will not launch ventures if the Egyptian government doesn’t find a solution to the exchange rate problem.
The Egyptian government was expecting a growth rate of five per cent, which it has already achieved, but this isn’t enough to create jobs for the rising number of unemployed youth.