After the historic hotel sale deal.. Will the price of the dollar fall in Egypt within days?

In recent hours, Egypt witnessed a major sale deal, as the Egyptian government, represented by the Sovereign Fund of Egypt, signed the sale of a 39% stake in Legacy Hotels Company - which owns 7 historic hotels - in favor of “Aykon” Company, whose main shareholder is businessman Hisham Talaat Mostafa, for 800. Million US dollars.

This deal comes within the framework of the Egyptian government's efforts to attract foreign investment and revitalize the tourism sector, which is one of the most important sources of hard currency in the country.

Egyptian efforts to improve the value of the dollar

Professor of Economics at Cairo University, Dr. Osama Abdel Khaleq, believes that these deals come to improve economic conditions in Egypt, which increases the country’s attractiveness to foreign investors.

He stressed that the impact of the hotel sale deal on the price of the dollar in Egypt may be diverse and complex, and on the positive side, these deals can enhance confidence in the Egyptian economy and attract more foreign capital, leading to an increase in the supply of hard currency and improving the value of the dollar in the Egyptian market. Therefore, this may improve the purchasing power of Egyptians and enhance economic stability.

Strengthening banking supervision

He added that the concerned authorities must take appropriate measures and precautions to confront any possible negative repercussions of hotel sales deals on the price of the dollar in Egypt, and banking and regulatory oversight must be strengthened to monitor the flow of foreign currencies and prevent manipulation in the exchange market.

He continued: “The government must also enhance investments in other sectors to diversify sources of hard currency.”

Will the price of the dollar decrease in Egypt?

The professor of economics ruled out reducing the price of the dollar in Egypt currently, explaining that one of the main reasons for this step is to increase tourism and investment revenues to increase the flow of foreign currencies into the country, which in turn leads to an increase in the supply of the dollar and a decline in its value.

He continued: In addition, imports of strategic and food goods must be reduced and replaced with local production.

He pointed out the importance of government banking policies that play a role in the decline in the price of the dollar, as the free currency rate policy allows the forces of supply and demand in the market to determine the exchange rate, and this policy led to achieving a balance between supply and demand, an improvement in the distribution of foreign currency and a decline in the price of the dollar.