The former head of the Egyptian Direct Investment Association, Hani Tawfik, said that the goods accumulated in Egyptian ports amount to $9.5 billion, including goods worth about $4 billion that will be re-exported, and not necessarily released now.
In an interview with Al Arabiya channel, Tawfiq added that the actual goods that must be released are worth $5.5 billion.
He pointed out that the International Monetary Fund loan and part of the Arab deposits with the Central Bank of Egypt were used for the release About the goods in the ports.
He stated that more important than the release of goods is the operation of factories, and the flow of blood in the capital cycle in Egypt.
On the possibility of Egypt borrowing from abroad after the fund’s loan, Tawfik expected that it would not resort to issuing international bonds, but would rely on large international funds and institutions.
Tawfik expected a decrease in the volume of remittances of Egyptians abroad during the recent period, with some obtaining Egyptians’ money from abroad and paying for it in Egyptian pounds to the traveler’s family at the black market rate.
He stressed the need to reach a balance between the official exchange rate and the market rate, in order to avoid wrong practices. Tawfiq said, “Supply and demand will inevitably meet…because the forces of supply and demand cannot be overcome.”
On offering the Suez Canal on the stock exchange for Egyptians, Tawfik expressed his opinion on this step, saying: “The state does not need liquidity in pounds, but rather needs dollars.”
Tawfik revealed that the only solution is to issue long-term bonds to guarantee the revenues of the Suez Canal, in which foreigners will subscribe and put them on the global stock exchanges, which helps to attract about 50 to 60 billion dollars quickly, which contributes to paying off debts and adjusting the exchange rate, so that the market price matches the price. Parallel to be repaid these bonds in the long term.