Egyptians need to become more productive if they wish to improve Egypt’s credit rating, according to Amr Hassanein, Chairman of the Middle East Rating & Investors Service (MERIS).
Speaking at the Euromoney conference on Monday, Hassanein told Daily News Egypt that Eni’s major gas find in the Mediterranean is expected to improve Egypt’s overall credit rating. However, he noted, the decision-making technique prevalent in Egypt must change.
Hassanein explained that the mere announcement of launching projects is not enough to improve Egypt’s credit rating, but that to do so, those projects should be implemented as soon as possible.
Egypt needs to generate foreign currency revenues to rebuild its foreign exchange reserves, and improve the value of the Egyptian pound against foreign currencies once again, according to Hassanein.
Hassanein anticipates that the Central Bank of Egypt (CBE) may have to undertake another devaluation of the Egyptian pound against the dollar during the upcoming period. He added that the price of the Egyptian pound against the dollar is currently supported at a higher value than by foreign investors and international ranking entities.
He noted that the CBE is doing its best to maintain stability in the Egyptian exchange market, and support the local currency against the dollar. In the end, however, the CBE needs foreign currency, which is not in its hands, to help it achieve that, and requires the combined efforts of decision makers in Egypt.