23/02/2003
The stage we are going through is not sufficient to evaluate the experiment, because we are still experiencing an ‘overshooting’ stage, which will go down so that market mechanisms will achieve a fair price of a basket of currencies against the Egyptian pound. ( Available in Arabic )
It is expected after this stage that Egyptian industry should benefit from the relative rise of foreign exchange to boost exports and secure part of its imports. The coming period is expected to witness the banking system raising the interest rate on dollar savings in comparison to the interest rate in the world to attract dollar deposits with Egyptian banks to avoid the so-called the ‘dollarization’ phenomenon, as the interest rate on the Egyptian pound is still attractive. It is also expected that the Central Bank of Egypt will play a balancing role through acting as a buyer and a seller of foreign currency within the limits it sees reasonable to achieve its polices. So it can be effective through daily transactions.