Economic expert Magdy Ashmawi said in an interview with ArabsToday that the dollar fluctuation is a natural reaction to the flotation of pound, adding that the Central Bank of Egypt's (CBE) decision to increase interest rate on pound has affected the domestic investments.
He asserted that the government needs to control markets to prevent manipulation, referring that the increase in domestic production is the perfect solution to deal with the current budget deficit.
He agreed with the government latest decisions to help Egypt economy to rise again, but he expects a continuous increase in the prices and the need to come up with a suitable solution , adding that the Central Bank is here to fight inflation , yet we don’t see that, forcing the bank to increase the interest rate, which is a logical solution in his opinion.
He added that Human force is another way to fight inflation, and now more than ever the government and the people need to work together to increase the production and compete with foreign goods, explaining that the drop in the dollar price was expected due to traders’ respond to rationalization of high quality imported goods.
He said that all the previous indicators besides Tourism will help the economy in the future, and we will see better days , concluding that national projects are a burden for the time being but we cannot do without them , we just need an organized process to completely benefit from them to raise our economy.