After Russia announced dealing in the “Egyptian pound” .. 7 economic advantages to Egypt
The inclusion of the Russian Central Bank of the Egyptian pound in its basket of currencies is a positive indicator and an optimistic step in enhancing and facilitating trade exchange between the two countries and relieving pressure on the use of the dollar.
Shrouq
The Russian Central Bank decided to add 9 new currencies, including the Egyptian pound, to the list of foreign currencies whose price is officially determined against the ruble.
The decision of the Central Bank of Russia made many people wonder about the importance and benefit of this decision to the Egyptian economy.
The Russian decision came at a time which Russia is facing a crisis due to the economic sanctions imposed on it by Western countries because of the war on Ukraine, which impedes its access to its foreign currency reserves, especially the dollar.
Egypt is also seeking to create an index for the price of the pound, which does not depend only on the dollar, in light of the crisis it faced after the Russian war on Ukraine, the flight of foreign investments from emerging markets, and the pressure on the local currency as a result of the lack of dollar inflows amid large financing needs for Egypt Because of the high import bill and the cost of debt.
Dr. Abdel Moneim El-Sayed, an economist and director of the Cairo Center for Economic Studies, said that this decision has many advantages for the Egyptian economy.
Many economic advantages of the Russian decision
1. Dr. Abdel Moneim El-Sayed said in his statements, "Making such decisions will allow the two countries to use the ruble and the pound in commercial transactions instead of resorting to the dollar."
2. This decision represents a significant saving of the green currency in Egypt “dollar", due to the dispensation of its use with trade exchange with Russia.
3. Egypt will also benefit from Russian tourism, in addition to trade exchange.
4. Egypt will also benefit from Russian tourism coming to it in addition to trade exchange, by obtaining the Russian ruble, which will be reused again in trade exchange with Russia.
5. Taking this decision at the present time, especially since the dollar’s prices witnessed declines in the past period, will contribute to increasing the pound’s competition with other currencies.
6. This decision helps save the dollar in Egypt due to its low use with Russia and its replacement.
7. These decisions will contribute to a strong boost to the Egyptian economy, and reduce pressure on the dollar and its demand, as it is linked to many products that the Egyptian state imports from abroad, which will reduce demand for it and lower its price even more, especially if other countries take such decisions.
