Latest news with #TarekMetwally
Egypt Independent
07-05-2025
- Business
- Egypt Independent
Egypt's foreign reserves rise to US$48.144 billion by the end of April: CBE
The Central Bank of Egypt (CBE) announced that the country's net foreign exchange reserves rose to approximately US$48.144 billion by the end of April. According to data published on CBE's website on Tuesday, Egypt's foreign exchange reserves rose by approximately $387 million during April, from approximately $47.757 billion at the end of March 2025. This increase reflects a gradual stabilization in macroeconomic indicators and a recovery in dollar resources, thereby improving the country's ability to meet its external obligations and meet the market's foreign exchange needs. Foreign reserves play a pivotal role in supporting the national economy, as they are used to provide strategic goods, pay off foreign debt installments and interest, and deal with economic crises, especially during periods of fluctuating revenues from foreign currency-generating sectors such as tourism, exports, remittances from Egyptians abroad, and foreign direct investment. Banking expert Tarek Metwally emphasized that the increase in foreign exchange reserves is an important message that reflects an improvement in foreign exchange resources. He explained that several reasons led to the increase in the CBE's foreign exchange reserves, including the recent increase in remittances from workers abroad, in addition to the increase in Egyptian exports during the first half of 2025. Metwally added that tourism has witnessed a significant boom recently, supporting foreign currency inflows and foreign direct investment, which represents a primary source of hard currency and bolsters foreign exchange reserves. He pointed out that Egypt's foreign reserves consist of a diverse basket of major global currencies, most notably the dollar, euro, pound sterling, Japanese yen, and Chinese yuan.
Egypt Independent
16-04-2025
- Business
- Egypt Independent
Central Bank of Egypt to cut interest rates, expert says
Banking expert Tarek Metwally anticipates the Central Bank of Egypt (CBE) to cut interest rates by 200 basis points (equivalent to two percent), despite rising fuel prices and the potential for the return of inflation. The Central Bank's Monetary Policy Committee will hold its meeting on Thursday – its second meeting regarding interest rates in 2025. Metwally noted that this meeting comes amid accelerating economic challenges, making the decision to hold or cut rates debatable, each with its own justification. During a telephone interview with TV host Lamis al-Hadidi on the'Last Word' (Kalema Akhera) TV show, Metwally explained that there are several reasons supporting the move to cut interest rates. Among these reasons is the positive gap between inflation and interest rates. 'The inflation rate is currently at 13 percent, while the interest rate is 27.5 percent. Even if inflation rises to 15 to 17 percent following the increase in fuel prices, there remains a large positive margin (seven to eight percent) that allows for a reduction without a significant impact on inflation targeting,' he explained. He noted that that the second reason is stagnation in local markets, noting that Egyptian markets are suffering from a clear recession. Metwally explained that the third reason for the reduction is the rising burden of public debt servicing, as: 'The general budget bears an increasing burden due to public debt, which doubles by approximately 100 percent every 3.5 years. This calls for stimulating economic growth and reducing the cost of government borrowing by lowering interest rates.' He concluded by saying that a '200 basis point interest rate cut will not negatively impact inflation targeting and will give the government and the private sector room to maneuver amid economic pressures.'
