12:42 PM Friday, February 23, 2024
Cairo – Masrawy:
Today, Friday, the markets are awaiting the announcement of the details of the major investment deal, which was mentioned in a statement by the Prime Minister on Thursday.
It is expected that the deal will relate to a large investment project on the land of the Ras Al-Hikma area on the northern coast, an area that has included urban momentum and development over the past years, with major real estate companies interested in implementing projects on it.
Analysts point out that the anticipated deal will have direct and indirect effects on Egypt’s economic situation and the lives of citizens, and can be summarized in several points.
Expected benefits
– Attracting foreign direct investment and increasing the state’s foreign exchange resources, especially in light of the decline in Suez Canal revenues due to tensions in the Red Sea and the decrease in the rates of passage of cargo ships.
The availability of hard foreign currency in banks would contribute to alleviating the pressure on demand for the dollar and thus its price would decline in the parallel market.
-The decrease in the price of hard currency on the black market will contribute to reducing the gap between the price of the dollar in banks and the parallel market and thus ease the pressures of the International Monetary Fund on Egypt regarding the flexibility of the exchange rate.
Reducing this gap will facilitate the procedures for reaching an agreement with the International Fund, whose negotiations began last month, as Egypt seeks to obtain two tranches of the loan postponed from last year and a next tranche due in March. It also aims to increase the value of the loan from 3 billion dollars to approximately 7 billion dollars. Or $10 billion according to expectations.
The decline in the price of the dollar in the parallel market would reduce the price of gold, which witnessed record highs in the past months, as well as reduce the rise in the prices of commodities and foodstuffs, by providing the dollar in banks to import commodity needs and thus increase their supply.
2024-02-23 10:42:00
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