(MENAFN - Youm7) Egypt will not go bankrupt, assured the deputy chairman of the Central Bank of Egypt, Hashem Ramez, and the Egyptian economy is secured and stable so far. He said the foreign exchange reserve overcame the most difficult phase since the incidents of the Egyptian January 25 Revolution.
This was represented by the foreigners' acute abandon investing, which are called indirect foreign investment. The value of their withdrawal reached U.S. 10 billion after being U.S. 12.5 billion by the end of December 2010.
Ramez said the international economic value classifies the most dangerous stage of international reserves when it covers less than three months of commodity imports, which equals U.S. 12.5 billion for Egypt.
He added the international reserves reached U.S. 24 billion this month. "The resources and input of foreign exchange for Egypt, such as remittances of Egyptians working abroad, reached U.S. 12.6 billion. Suez Qanal imports reached U.S. 5 billion by the end of the last financial year and are enough to support state resources," Ramez added.
He stressed the necessity of focusing on pushing the production wheel and economic growth forward instead of talking about the reserve, which is now stable although it lost about U.S. 1 billion during in the last month, reaching U.S. 24 billion.
Ramez said the current size of foreign investments reached U.S. 2.5 billion and ensured there will not be a dramatic decline again. He said the total external debt owed by Egypt is estimated by U.S. 34.9 billion represent 15.5 percent of the gross domestic product. He said this percentage is one of the smallest debts worldwide.
Ramez said the exchange is now stable and balanced, especially since the last month and the first days this October. He added the Central Bank of Egypt didn't interfere during the last period in the exchange market but only interfered with contribution to maintain the balance of the market exchange.
The Central Bank of Eegypt's policy succeeded to maintain the price of exchange of 1 EGP in front of the U.S. dollar, Ramez said.