‘Flexible exchange rate’ more preferable for Egypt economy – minister

Egypt’s government prefers now a more flexible exchange rate to support an economy that has come under pressure from the Russia war in Ukraine, its minister of planning said on Tuesday.

“We as a government do agree that a flexible exchange rate is definitely good for the economy,” Minister Hala al-Saeed, who’s also chairwoman of Egypt’s sovereign wealth fund, told Bloomberg Television in an interview.

Al-Saeed further said: “the government is working very hard to increase our foreign exchange receipts by means of an effort to boost exports, foreign direct investment and remittances from abroad.”

She pointed out that Egypt’s economy grew 6.6 percent for the last financial year, the highest growth rate since 2008, driven by growth in various sectors of the economy.

“There are major sectors that contributed to this growth, led by the telecommunications sector, which recorded a growth of 3%, and hospitality sector, which recorded a growth by 45%, although it faced many challenges due to the impact of the geopolitical conflict between Russia and Ukraine.”

“The industrial manufacturing sector also witnessed a growth of 9%. almost all sectors recorded a positive growth rate during the last fiscal year. She added that Egypt will reconsider its forecast for the economy by next month to account for shocks from abroad,”

“There is currently a focus on three major sectors, namely agriculture, industry and ICG. Also, the government is working to strengthen the cooperation with the private sector to lead the Egyptian economy,” al-Saeed added.