It seems that we will keep talking about the Egyptian Economy for long time. Lately the Central bank of Egypt has decided to raise the interest rate again for the third time in a row. The president of the central bank and its committee seems insisting in not listening to any advice from the economists except from international monetary fund.
The measurements that the central bank tries to take, I believe will lead Egypt to declare Bankruptcy sooner or later. It’s impossible and insane to increase the interest rate to curb the inflation, while you don’t have any other source of foreign currency after tourism stopped and the productions decreased.
Having said that, there is still chance to amend the Egyptian economy away from raising the interest rate and increase the prices of the main utilities which affects the Egyptians has Low income.
First, stop raising the interest rate because that will not lead to anything except increasing the internal debt and more inflation due to lack of US Dollar.
Second, impose Taxes in all houses valued at one Egyptian million and more, because by this way you can find a stable source of income to the state and that will decrease the internal debt.
Third, stop taking any more loan from IMF, as the IMF doesn’t care about the Egyptian situation, but they care for applying policies doesn’t go a long with the Egyptian case.
In conclusion, I want to assure that without following some of these policies to stop the Egyptian economy from collapsing, we will be in a big dilemma.
