Everyone watched Dr. Mostafa Madbouly, Prime Minister, as he spoke about the economic situation, sending a message of reassurance to Egyptians regarding the liberalization of the exchange rate, stressing that the state will not repeat previous mistakes regarding intervention to determine the exchange rate, and then eventually be forced to resort to floating at a large percentage, as happened in Last March.
Madbouly’s statement
Madbouly’s statement ended, but many did not pay attention to what the Prime Minister meant by past mistakes. Here, Madbouly did not want to address that stage in which monetary and financial policy was managed without…
Clear plans, flexible policies, and a vision capable of getting through the trap of stabilizing the price of the pound, but it relied on an improvised policy, empty statements, and bright promises that are far from the financial and economic reality. These are the ones who allowed us to reach the forced decision last March to liberalize the exchange rate to correct a distortion that those responsible for… Monetary policy in the era before Hassan Abdullah, Governor of the Central Bank of Egypt.
Past mistakes
The mistakes of the past that Madbouly intended were a heavy legacy that Hassan Abdullah inherited, against his will, to lead a corrective policy from the bottom that began by correcting the mistakes of that past, taking matters into his own hands, and reconciling his monetary policy to suit the available capabilities without burying his head in the sand and burdening those who preceded him with those crises.
Hassan Abdullah took over the reins at a time of the most dangerous, difficult and desperate reality, in the midst of loud and dangerous crises, and chronic consequences of old policies, but he succeeded in confronting all the challenges, turning adversity into a blessing, and benefiting from mistakes and correcting them, so the bold floatation decision was made to end the era of financial randomness, stop the bleeding of the dollar, and restore… The Central Bank has its prestige and power and opens the door to bold decisions according to global financial methods based on real indicators and without hiding information, circumventing numbers, or postponing difficult solutions. The result was that Egypt has returned financially stronger than it was before, and the cash reserves jumped to unprecedented numbers, the dollar returned to the banks, Egyptians’ remittances were recovered, foreign currency savings jumped, and the doors of charity and investment were opened wide in all fields. Even those who believe it cannot believe that what happened between the ordeal and the ordeal was a few months.
Achievements of the central bank
The most important thing in everything the Central Bank did and achieved was that its governor did not fill the satellite TV screens with noise, presenting himself as the philosopher of money, that he saved Egypt from financial bankruptcy, and that he did the impossible, but as usual, adults work in silence and stay away from the limelight, and his meetings were so rare that they were counted on the fingers of one hand, and he was entitled. He may appear on several occasions and explain his achievements, but those who are raised with responsibility should not be tempted by the lenses of photographers or telling jokes in their official press conferences. As Madbouly said, we will not repeat them. Past mistakes and the time of randomness are over.
