Egypt Daily News – Dr. Mostafa Madbouly, the Prime Minister of Egypt, addressed the recent exit of hot money from the Egyptian market during a press conference at the Council of Ministers in New Alamein.
He noted that the global financial landscape has been turbulent, particularly after a significant decline in stock markets that resulted in a loss of $2 trillion on what was dubbed “Black Monday.”
Madbouly highlighted that the global confusion has had substantial economic repercussions for Egypt, contributing to declines in the Egyptian Stock Exchange.
He clarified that the outflow of hot money was from the local market and not from the country’s international reserves.
He reassured that Egypt would not revert to a dollar crisis and emphasized the government’s commitment to maintaining a flexible exchange rate regime.
He acknowledged the recent outflow of hot money due to the global stock market crisis but praised the Central Bank’s effective handling of the situation, which resulted in a minor increase in the exchange rate.
The Prime Minister asserted that Egypt has secure sources of foreign currency and strategies in place to bolster foreign reserves and cash liquidity.
Furthermore, he dismissed rumors of an impending dollar price increase, attributing such speculation to individuals and groups with vested interests in disrupting the foreign currency market.
Madbouly called for a focus on factual information rather than succumbing to rumors, emphasizing the strength of Egypt’s foreign exchange reserves despite ongoing global tensions.
