Page 16 - Issue 73

E L I T E
E L I T E V O L .1 I S S U E . 7 3V O L .1 I S S U E . 7 3

The IMF's goal, like painkillers, is to inject An example of countries' success without
significant liquidity into the Egyptian economy, the IMF is Turkey, which relied on the IMF
which will revive it for a short period of time for a long time in the 1990s. However, in
and then return to recession. However, if Egypt 2008, it decided to renew its agreement
relies on its own financing or domestic debt, with the Fund and relied on its own
such as bonds and treasury bills, financing will resources to grow its economy. This
be rapid and the economy will recover in the actually happened, and the Turkish
long run. economy and the Turkish lira recovered for
a period of time without relying on the IMF
until 2015.
However, this decision is not without
challenges. The primary challenge facing
Title
Egypt is the shortage of hard currency and
foreign exchange reserves. There will also
be pressure on the exchange rate and
Name- Major- Year
inflation, and difficulty attracting foreign
investment, as the IMF will scare investors
away from investing in Egypt. Credit rating
Egypt must rely on its own resources to agencies will then downgrade Egypt's
increase foreign exchange, such as the Suez rating. Finally, if Egypt decides to separate
Canal, tourism, increased exports, and from the IMF, it must continue with
remittances from residents abroad. Also, not structural reforms, including taxes,
relying on the IMF will also reduce the cost of spending, and institutional efficiency,
external debt and will give Egypt the increase its exports and foreign investment,
opportunity to evaluate various sectors of the and stimulate tourism to increase the hard
country and identify areas that need work or currency and work to control Inflation,
improvement, and then develop a long-term exchange rate, and programs to help the
plan for the necessary development, instead of poor and strengthen social protection.
only implementing the reforms required by the
IMF and neglecting other important aspects...
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