Category
🗞
NewsTranscript
00:00 The Egyptian government is announcing the acceptance of all payments of the "Head of Wisdom" deal, the largest direct foreign investment deal in the country's history, worth $35 billion.
00:11 The latest payment, which amounts to $20 billion, was recently received, including a previous UAE deposit to the Central Bank of Egypt worth $6 billion.
00:21 The payments have the effect of improving the money flow of some financial institutions, mainly the monetary reserve and the foreign debt flow to Egypt, which may decrease by about $11 billion.
00:32 This will reflect the improvement of the country's credit rating and make it a more attractive destination for foreign investment.
00:39 I am reducing the debt that I have from the $11 billion that will be removed from the U.S. debt. Plus, having such assets will help me more to attract more foreign investments on the ground.
00:53 Because now I have a big project, a mega project, and I have received my income, which will encourage other investors.
01:00 We hear that there are other agreements, in addition to that, that we will not say that this is a trust, as I said, but we are looking at it, specifically, the deals, and the deals between international financial institutions and many countries to start investing directly.
01:14 According to many bankers, the impact will extend to the improvement and stability of the exchange rate by increasing the exchange rate of foreign currency, which will contribute to strengthening the value of the currency in front of the dollar, even relatively.
01:26 The door will open in front of the banks to raise the restrictions imposed on the use of foreign currency, and above all, to raise the limits of the use of credit cards abroad and to provide more foreign currency to the investors.
01:39 The second payment of foreign currency, especially the dollar, will increase the central bank's reserve.
01:46 This will direct the users to go to the banks and get the dollar. Thus, I continue to put the black market in power and to make stability and strengthening of the currency and reserve markets.
01:58 This will also affect the inflation, when foreign currency is available and I can get all the needs of the purchasing system.
02:05 This will affect the reduction of costs, and consequently, the reduction of inflation.
02:09 We expect that, God willing, the price of interest will start to decrease in the coming period.
02:16 This is the double of the foreign debt to Egypt four times in the past ten years, until it was recorded at $168 billion, while the reserve of Egypt from foreign currency rose to $41 billion at the end of April.
02:29 The government will start to balance the debts and some of the benefits, in addition to the effects of these flows on the strengthening of foreign currency and the stability of the exchange rate.
02:45 Farouk Youssef, CNBC, Al-Qahira