Economy and Business life Into Egypt

The egyptian economy and Corona, Episode#1

The people here in Egypt never thought that an epidemic spread could affect their lives, till the last moments of the crisis they have been handling it carelessly, the general opinion claims that the degree of satisfaction of the people by the government performance haven’t reached that level of collaboration before and here comes the point, after the first days of the crisis the government have started to think positively, we conersily say that the egyptian government is working through a double edged plan that is looking towards the crisis and looking to the economy in the days ster the problem pass, simplys the Egyptian government is one of the few entities around this world that believes in life after Corona.

The Egyptian monetary Policy have been the greatest concern for this crisis, the government have used the days from the beginning wisely to start adopting a conservative policy to manage the crisis and to secure a long term benefits for the economy as a whole ,firstly, the move for reducing the interest rates were aiming at the first place to shift the burden from the side of the government of securing a large interest payments plus it allows people within the economy to have a more flexible financial dealings, the only drawback here was the point that relates to the tight restrictions upon liquidity that the government have imposed, although this policy do have a long term positive impact on the market but the majority of economists have seen that it has been false in the time of its adoption, as it have Created a huge fears upon the local people that might bring an only short run negative effect, but the government is betting that this effect won’t last too long and the market forces along time is going to correct everything.

The main aim for this government policy is to sure the financial integration and to bring more control for the government among the money supply, this also might result in a greater control among the market activities in the long run and will be resulting in a higher tra revenues for a government that is setting their main aims nowadays toward a huge economic reform activities and have to finance their budget heavily from the shadow economy that have been operating freely for long decades.

Also, the rescue plan that the government adopted by injecting EGP 100bn has been very surprising for the local citizens, such a policy shows that the government intervention will be the advantage that the people will enjoy from now on, this represents an optimistic point for the people who have suffered a lot before from the economic reforms in the past years since the floating of the Egyption pound which resulted in a very high rate of inflation (stagflation) in a very short period of time. 

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