26 December 2012

Egypt: Prime Minister - Pound Devaluation Against Dollar Minimal

The Egyptian pound has devalued against the dollar by only six piasters, Prime Minister Hisham Qandil said Tuesday, noting that this decline does not exceed one per cent.

Fluctuating exchange rates are at their normal given the current political landscape that spills over into the economy, Qandil said.

Political stability and security are important if Egypt is to lure back foreign investors and tourists, the PM said, pointing that this would greatly contribute to Egypt's foreign currency reserves and eventually help bridge the deficit in the balance of payments.

The government's top priority now is to bridge the state budget deficit down and to increase the Gross Domestic Product which will in turn solve the unemployment problem and decrease the inflation rate, Qandeel said. This will also enhance the competitiveness of Egypt's export on international markets, he said.

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