How would new IMF loan help attract foreign investment back into Egypt stock market?
It is necessary to secure dollar liquidity to prevent speculations on local currency: Amr H. Elalfy in Daily News Egypt
Quotes by Amr Hussein Elalfy
Amr Elalfy, head of the research sector at Prime Securities, said that the positive part of the IMF’s decision is the approval of disbursing the first tranche of the loan, but there is a part related to the decrease in the value of the tranche that will be disbursed. He pointed out that the additional financing of about $14bn from Egypt’s international and regional partners, is the most important. He expected that the exchange rate of the pound against the dollar would witness more flexibility during the coming period, pointing to the need to focus during the coming period on providing dollar liquidity in order to prevent speculation on the local currency, in addition to the need to open imports again to control inflation.
Elalfy pointed out that focusing on investing in projects with dollar returns has become an urgent necessity, and a clear approach must be adopted in the medium and long term. He expected the stock market to witness a price reset through an expected correction that will be accompanied by stability, pointing out that it could witness a profit-taking process driven by the recent rise in the market, likely to recycle liquidity between some stocks and others.