Here’s a rewritten version of the article, focusing on unique phrasing while preserving all verifiable facts and structuring it for breaking news with evergreen context:
Egyptian Pound Sees Gains, But Experts Urge Caution Amidst Lingering Economic Pressures
Cairo, Egypt – The Egyptian pound has experienced a notable strengthening against the US dollar, reaching its highest point since October. This positive shift is attributed by economic analysts to a confluence of global and domestic factors, including a weakening US dollar on the international market, increased Egyptian remittances from abroad, robust tourism revenues, and a surge in foreign investment in government debt instruments.These elements have collectively boosted dollar liquidity, supporting the Egyptian currency.
However,experts are sounding a note of caution,warning that the current enhancement in the exchange rate may not signal a long-term resolution to the country’s economic challenges.Wael Gamal, head of the Economic and Social Rights Unit at the Egyptian Initiative for Personal Rights, echoes the sentiment of banking expert Abdel -Al regarding the reasons behind the pound’s recent appreciation.
Gamal elaborated on the contributing factors, highlighting:
the global depreciation of the American currency.
An uptick in remittances sent by Egyptians working overseas.
A significant increase in tourism income.
The influx of foreign capital into Egyptian government debt tools, which has injected much-needed dollar liquidity into the market.
Despite these positive developments, Gamal expressed concern in statements to Al-Jazeera Net that the current exchange rate improvement is “suggestive in the long run.” he pointed to substantial financial obligations facing the Egyptian government in the upcoming period, encompassing debt repayment installments and interest, as well as the financing of public subsidies and social programs. These commitments, he warned, could exert renewed pressure on foreign exchange reserves and jeopardize the stability of the Egyptian pound in the future.
Gamal further posited that as long as public debt continues to climb and the cost of servicing that debt escalates, while foreign exchange sources fail to grow commensurately, the Egyptian pound will remain susceptible to fluctuations between periods of recovery and strain. he emphasized the critical need to reduce public debt levels to a secure threshold,especially in light of the inherent risks posed by geopolitical tensions,which represent a significant external factor influencing currency stability.
Addressing recent pronouncements by the Prime Minister regarding the conclusion of the economic crisis, Gamal voiced his reservations.”I am unaware of any crisis that has ended,” he stated, questioning the specific crisis being referenced. He suggested that the Prime Minister might be referring to the dollar shortage, a recurring issue that appears and disappears without essential solutions, a pattern that has been observed multiple times in recent years.Regarding the disconnect between the pound’s improvement and the persistent high prices of goods, Gamal explained that while prices tend to rise rapidly with a strengthening dollar, they do not typically decrease with the same swiftness when the dollar weakens. He attributed this phenomenon to a lack of robust competition and the presence of monopolistic tendencies, where a select group of major importers, merchants, and manufacturers exert significant control over the market.
