Page 8 - Iissue13-en

Page 6 ISSUE 13 , November 2019 ELITE

Dr Gouda about Interest rate cuts and

cnceling the customs dollar

We asked him about his evaluation of
the expected effects of the recent
economic decisions such as cutting

down the interest rate and the
abolition of the customs dollar. He
responded that There are obligations

by the Fund after signing number of
agreements, explaining that the theory
followed by the Central Bank is: Use
the interest rate as a tool to combat
inflation , therefore when inflation

rates increases, the interest rate rises
depending on that inflation is due to
several money reasons, but the

difference is that inflation in Egypt is
due to structural reasons and not
monetary reasons ,Thus, raising the
interest rate was a wrong decision that
led to more inflation because raising

the cost of credit and operating for
different projects increased fire
ignited, so we must pay attention to the

structure of the economy and
production units and incentives system
for those producers in agriculture and
industry, without which the economy is

totally fragile, for example lowering or
raising the price of oil , both cause a
problem. As a former minister, he know
that the high price of wheat is also a

problem, That's why he made a great
effort to raise Egypt's wheat
production, as These are the sectors
that need attention.

Page 6 ISSUE 13 , November 2019 ELITE