Consulting Company: Percent Right and Mohamed Farid

consulting company: INVESTMENT PUSH "The decision is 100 percent right, according to Xinhua China. It is the first decision to be decisively made to treat a defective monetary policy among other complementary decisions to fix the financial market," said Mohamed Farid, former EGX vice-chairman and head of Dcode Economic and Financial Consulting Company. The Central Bank of Egypt announced on Thursday devaluation of the local currency by 48 percent which would allow the pound to float in the financial market based on offer and demand for the dollar. Recession over the past five years of political turmoil hit the country main foreign currency resources including tourism, foreign investments and exports, which led to a huge hike in dollar price and a wide gap between its official and black market exchange rates, affecting many import-based businesses. "Today move puts an end to the black market as it makes dollars available in the banks with a competitive price, which is expected to refresh the import-based industries and businesses and attract foreign investments into the country," Farid told Xinhua. After raising the official exchange rate of the dollar from 8.8 pounds to over 13 pounds, subjecting the dollar price to offer and demand mechanisms is expected to make investors confident while planning to invest in Egypt without worrying about their funds. "This will surely have a positive effect on investment as well as the stock exchange market in Egypt, because foreign investors will be encouraged by the liberty to enter the Egyptian market with an actual rate for the foreign currency," said Mohamed Youssef, Director of Egyptian Businessmen Association. He continued that the devaluation makes the currency a tool not a goal and it will help boost economy by urging closed or reduced businesses to reopen or increase production. "It will also make foreign investors think purely about investment chances rather than how to get in and out Egypt amid two currency markets," the financial expert explained. (news.financializer.com). As reported in the news.