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00:00Good evening, and welcome to this special interview that we are having on the eve of the spring meetings of the IMF and the two international banks here in the American capital, Washington.
00:28The Egyptian economy was a file that was present with us during the past period and even during the days of this meeting, especially since the IMF, of course, was monitoring the situation of the Egyptian economy during the past period.
00:42There was a talk in the report of the World Economic Forum about the Egyptian economy, and today a new era is waiting for this economy, especially after a series of financing that Egypt received.
00:54We will talk about the most prominent of these files that we monitor there, what has changed, what are the priorities of the Egyptian government in terms of spending the funds that will come from different parties.
01:05To talk about all this and more, Dr. Mohamed Ma'id joins us, and he is the Deputy Minister of Finance of Egypt.
01:12Dr. Ma'id, welcome to the Arab CNBC screen.
01:16Let me start by talking to you about the most prominent figures in terms of the files that will be handed over during the coming period.
01:27What is the size of the monetary inflows that Egypt will witness throughout April and May in terms of the IMF program, the IMF card, and even in terms of capital financing?
01:41Thank you very much, but from here until, for example, the end of May, we believe that the second chip of the IMF, which is expected to reach about $20 billion,
01:58and also in the coming periods, we have a sum from the International Bank. Let me take it until the end of June, we expect around $4 billion from the International Bank,
02:18and there is 1.07 billion euros from the European Union, and there is a chip of $820 million from the IMF, and there is an expected chip from some countries in Japan,
02:37which said that there is $230 million in Egypt, but we are still seeing their timing together, and there are many other amounts. We have a working investment program,
02:53and we also see that some FDIs are currently talking about it, so all this says that whether there are two weeks remaining in April, in addition to May and June,
03:14there may be a total of between $25 billion and $30 billion during this period. These are the estimates.
03:27How will these revenues be used? What are the priorities of the Egyptian government today in light of the existence of these cash payments that it will receive?
03:38Of course, there are things that we have agreed on as a government and as a central bank. Of course, we are now trying to increase the cash reserves of Egypt,
03:55and we announced at the beginning of this month that the cash reserves have increased to more than $40 billion, and I think we have a plan to increase the cash reserves in the coming periods.
04:11How will part of these revenues be used to support the foreign reserves of Egypt? You said that you are aiming to raise the foreign reserves. What will you depend on to raise these foreign reserves? On the head of wisdom deal or something else?
04:27When I said these numbers, there is a part of them that will be used to increase the cash reserves. The other thing is that the foreign debt is reduced because it is paid off from the coming amounts.
04:47The other thing is that the foreign debt is reduced because it is paid off from the coming amounts. The other thing is that the foreign debt is reduced because it is paid off from the coming amounts.
05:15The foreign debt is reduced because it is paid off from the coming amounts.
05:43Look, we ended in 1936-1923 when the debt was about 96%. I expect that the debt in 1936-1924 will be about 88%. So there is a strong decrease. I expect that the initial losses will be big.
06:03I expect that the initial losses will be big.
06:31I expect that the initial losses will be big.
06:55The initial losses file is a basic file for the strategy of Egypt and the new economic era for Egypt. It is a basic requirement for the IMF. What was achieved until the end of the current financial year 2024 regarding the losses file? And what is the size of the losses that you are targeting for the coming financial year?
07:17Look, for the financial year 2036, we were targeting losses of 2.4 billion dollars. We are almost there. For the new financial year 2024-2025, we are targeting losses of 3.6 billion dollars.
07:39Are there specific sectors?
07:41There are many sectors that we are working on. These sectors are in coordination with the IMF. We are looking at the requirements of the insurance sector, the banking sector, the petrochemical sector. We are working on all these sectors.
08:07As you said, last year, the financial year 2036, there were hotels, a smoke company, and iron. There were many sectors.
08:20I want, doctor, to take your opinion on a file. I know that this file is more closely related to the Egyptian Central Bank and the monetary policy. Nevertheless, I would like to hear your opinion on it. There is a kind of debate currently about the nature of the financing that we have seen in Egypt. Is it a free-float financing? Or is it a managed-float financing?
08:42Is it a free-float financing? Or is it a managed-float financing?
09:07Of course, I cannot say that I am in charge of the monetary policy in Egypt. I am a man in charge of the financial policy in Egypt. However, I go back to the press conference, the announcement of the Central Bank, and the Central Bank Governor's announcement of our commitment that the power of supply and demand will be the basis.
09:27If you can go back to the press conference, I believe that the Central Bank Governor's announcements in this month answer your question. I believe that we have announced our commitment to this matter, and there is no doubt about the commitments that we have committed to and have been announced by the Central Bank of Egypt.
09:51Do you have a plan for the next financial year?
09:56The financial year ends in June 30. There is nothing new until June 30. We have not yet made a decision about the new financial year. I believe that we will not be able to make a decision about what we will do in the new financial year until the new financial year arrives.
10:21Of course, we agree with the Central Bank. However, I am sure that if there is a decision to be made, we will be committed to it, even if it is a small one, like a billion or a billion and a half. We also prefer things that are innovative or untraditional.
10:43As you have seen, we have proposed in the Chinese market, in the Japanese market, bonds. If there is an opportunity, I will take it. If there is an opportunity, I will take it because I hope that there will continue to be diversity in currencies, markets, tools and investors.
11:10Because it is very important that there is diversity in the reserve. It should not be all one currency for a specific group of investors in one market.
11:21Doctor, in view of the current situation of the Egyptian economy, the funding that Egypt has received during the past period, the global economic situation and its impact on the Egyptian economy, the geopolitical tensions, in view of all these economic files, where do you see the fair value of the Egyptian pounds compared to the dollar?
11:43You are pushing me again towards monetary policies, and I cannot tell you what is your interpretation of what you mean by the fair value. But again, I think that the Central Bank's statements in this regard provide a sound scientific answer.
12:01I think that the Central Bank's statements in this regard provide a sound scientific answer. I think that the Central Bank's statements in this regard provide a sound scientific answer.
12:25I thank you for your presence with us, Dr. Mohamed Mouait, and I wish you all the best in your work.
12:31Thank you very much.
12:33And with this, viewers, we have reached the end of this special interview. Goodbye.