Egypt Shall Take Necessary Measures To Shield Economy: Ola El Khawaga

Ola El Khawaga, Research and Awareness Director at the Egyptian Banking Institute (EBI), called on policy makers in the developing countries especially Egypt to take the required monetary and financial policies and procedures to shield their economies against the negative repercussions of global financial crises.

On the sidelines of a conference held by EBI under the title of “The Banking Sector and Global Financial Stability: Challenges and Prospects”, El Khawaga affirmed that countries shall take the necessary procedures so as to stop the contagion of the European sovereign debt crisis.

The crisis may hit Egypt by affecting currency exchange rates, direct foreign investments, securities investments, exports to the European countries, the number of Egyptian employees there and the tourism outcome, she noted at the conference which is the first one held by EBI since last year’s revolution.

Therefore, the country shall develop the legal and supervisory systems of the banking sector by following up the performance of the European banks in Egypt and their transactions with local banks as well as increasing the local demand to offset the retreat of the European demand on Egyptian products and supporting food security networks to protect low- income people from the negative repercussions of the crisis.

El Khawaga remarked that this topic is important as the financial globalization has become irreversible.