He said that any geopolitical war in the Middle East has a direct impact on Egypt, whether it is the war in Gaza or the current war in Lebanon, and so far the issue is far from the Arab Republic of Egypt, with the exception of the skirmishes that occurred on Egypt’s border with Rafah, so the economic situation in Egypt will not be affected at all. Reflecting the political situation, he pointed out that “no one can involve Egypt in political disputes, and the situation is currently economically stable.”
He stressed that “Egypt’s hard currency revenues come from the Suez Canal, which works very well and excellently, and its revenues increase every year, in addition to remittances from Egyptians abroad continuing as they are, and also foreign direct investment is on the rise, while indirect investment in hot money may be affected.” Slightly if interest is reduced.”
He explained, saying: “Hot money enters treasury assets, so the interest may decrease, for example, if we reduce the interest by 50 points or 100 points… The Egyptian interest is still the highest interest in the region, so the hot money will not leave the market unless we reduce the interest.” “To a very large extent, and I do not think that the Egyptian state can do that.”
He continued: “Hot money has an alternative opportunity to invest in the stock market, especially since the entire current stock prices, as a market value of stocks, is much lower than their true value,” adding: “Reducing interest rates greatly benefits the Egyptian economy.”
He also talked about the investments that Egypt received worth $35 billion from the UAE to develop the city of Ras El Hekma, saying, “These amounts go into direct investments that Egypt benefits from, and this is the main role of Egypt’s sovereign fund and it begins to maximize the state’s untapped assets, other than other places within The country for which we are trying to obtain direct foreign investment to support the state’s general budget.”
At the same time, the bankers agreed, according to the “Masrawy” website, in a report entitled “Do Netanyahu’s wars deprive Egypt of the return of hot money after the US interest rate cut?”, that the impact of geopolitical tensions on the pace of the flow of hot money to Egypt is limited, thanks to the stability of the situation in Egypt and the increase in international support. And the Gulf that you receive.
Source: RT
#economic #impact #Netanyahus #wars #Egypt
2024-09-26 19:28:23
