Shock hit the world after Britain vote for the exit from the European Union, fears escalate from being a British exit is the first episode in the disintegration of the global system contract .. lost global markets up amount to 2.1 trillion dollars last Friday in the biggest daily loss in the financial markets, what about implications and challenges Sausbanda Egyptian economy ??
The results as a referendum resulted in the victory camp out of the European Union rose 51.9% after the membership lasted 43 years.
The Egyptian Association for Finance and Investment from the repercussions of Britain out of the European Union on the Egyptian economy crisis, warned in a number of sectors, describing it as a great challenge requires urgent action to confront it and to minimize the bad impact on the Egyptian sectors, which appeared early in the stock market lost more than 16 billion pounds in the first deal of its statement out of the Union.
Assembly noted in a report on the crisis that Britain out of the EU puts us in front of a set of challenges that must be considered and studied checker and fast and take appropriate actions and alternatives to avoid the negative consequences of Britain's exit from the euro zone.Reserves
He said Ahmed Adam banking expert that the sharp rise in gold prices has occurred after the announcement of the result of the referendum on Britain out of the EUEgypt will be affected by the reserves of foreign currencies positively, which include a gold 2430844 ounces, equivalent to 75.6 tons of gold, which means to increase the value of goldReserves in excess of $ 120 million.
It is worth noting that the value of gold reserves had reached in the month of April 2566 Mleon.dolar.
He continued, "but that the rise in gold prices was found to have a negative impact on deposit growth rates."
Abizaid will drop export credits to the UK during the coming period and therefore will be affected by active with Britain's export-oriented sectors negatively, a Masaather on Egyptian banks that deal with these sectors, in turn, will stimulate credits Importing from Britain, which will increase the demand for foreign currency and put pressure on the pound exchange rate Egyptian against major foreign currencies except that in contrast, will increase revenues of banking services to banks as a result of activity of import credits, which will return a positive effect on profits.
He said banking expert said falling sterling to its lowest level in 31 years last Friday - said the billionaire George Soros, who famously bet on a decline in the pound in 1992 that the pound may fall to $ 1.15 - would lead to the formation of most of the Egyptian banks, especially those with foreign capital allocations to the existence of differences foreign currency negatively evaluate most of the banks, which owns assets in foreign currencies, especially the euro and sterling Masaather a negative impact on net profit.
He explained that the return of British bonds hit record lows in terms of return on bonds touched for ten years 1.018%, and experts believe that it may fall more than that to at least 1%, which would negatively affect the Egyptian banks, especially those with foreign capital, as well as their own investment funds and investing in these bonds, other than the impact on investments in the British central bank bonds if the central bank invests part of its reserves.Exports and imports
Ahmed Adam banking expert said Egypt's exports to Britain will be affected negatively the exit of Britain from the European Union as they will be forced to reduce its imports from abroad and rely on local products by imposing customs were not imposed when she was a member of the European Union, in contrast, British imports to Egypt would be affected positively as British product prices will fall, which will increase the demand for them, but the increased demand for imports, plus dealing with the demand for foreign currency, which Macieckl pressure on the Egyptian pound's exchange rate.
Egypt's exports amounted to Britain during the first half of the fiscal year to $ 601 million compared to $ 820.5 million during the corresponding period of the previous year.
I agree with Mohsen Adil, deputy head of the Egyptian Society for Finance and Investment, saying that trade relations with the euro, Britain will be affected after the declines of the euro and sterling, because the decline in the prices of those currencies could create a similar decline in the Egyptian export opportunities for those markets as a result of lower prices against the dollar, and by extension against the pound, which what causes clearly higher growth in the European and English for Egypt imports opportunities.
It is worth mentioning that a large part of our exports to Britain is a goods and products for British companies operating in Egypt to benefit from lower wage labor, you export back to Britain Those products include pharmaceutical, cosmetics, chemical products, electrical appliances though the imposition of customs from Britain on imports and with crisis growing in Egypt that you find with foreign companies operating in Egypt difficulty in converting their profits outside the dollar may find some British investments graduated from Egypt during the coming period.
The focus of activity of British companies operating in Egypt, the areas of financial services, banking, energy, tourism, communications and information technology, and comes on top of operating in Egypt companies British Gas, British Petroleum "Shell", Unilever, Cadbury, GlaxoSmithKline, and a bank Barclays and HSBC .
And reached Britain imports to Egypt during the first half of the fiscal year to $ 884.7 million compared to $ 1003.8 million during the corresponding period of the yearThe former will be affected.
Investments amounted coming from Britain during the financial past five years, 24.2 Milirdolar constitute 43.8% of total investments entering Egypt, which amounted to 55.2 Milirdolar also reached investments coming from Britain during the first half of the current fiscal year 2.4 Milirdolar accounted for 40% of total investments entering Egypt and which amounted to 6 Milirdolar during the first half of the current fiscal year.
Adam said that the coming of the British tourism will not be affected as Britain renewed its constantly stopped its flights to Egypt.
The tourism revenues fell $ 1.3 billion as it fell from $ 4 billion during the first half of the previous fiscal year to $ 2.7 billion during the first half of the current fiscal year.
As for the influence on Egyptian workers' remittances received from Britain, it is expected to face the Egyptian labor, which did not reconcile their positions after Britain's difficulties in the coming period with a decrease in the next labor to Britain from foreign countries, including Egypt, which Masaather negatively on Egyptians working in Britain transfers, but the effect on the total remittances It will be limited.
And decreased remittances from Egyptians working in the first half of the current fiscal year by 1.1 Milirdolar than it was during the corresponding period last year, amounting to 8.3 versus 9.4 Milirdolar Milirdolar.The stock market and propositions
Said Mohsen Adel, deputy head of the Egyptian Society for Finance and Investment must rethink some things of which this is a good time to put state-owned companies in the Egyptian stock exchange or outside in this situation, as the number of companies during the past few months, announced its intention to launch GDRs on the London Stock Will this trend will continue or some of the amendments affecting it? With the escalation of the repercussions of Britain out of the European Union Does Egypt rethink the idea put dollar bills?
The students just need to Egyptian Stock Exchange performance and transactions where control precisely, during the current period, especially since there are Egyptian shares listed on the London Stock Exchange and the preparation of a quick alternatives to deal with any possible disturbances may occur in the case of a British decision to secede to limit its impact on the Egyptian stock exchange.
The Egyptian stock indexes tumbled to the closure of trading Sunday driven by an intense and indiscriminate selling by institutions and funds the Egyptian and Arab investment Egyptians and individuals affected by the repercussions negative for the exit of Britain from the European Union, which is pushing the global stock indexes sharply to decline amid fears of continued instability markets.
And lost market capitalization of the shares of listed companies about 15.9 billion pounds of its value to hit 376.3 billion pounds after trading amounted to 627 million pounds, and Mona's main market EGX 30 Index "the biggest daily loss in five months since 14 January.Recommendations
Ahmed Adam, called on the central bank to rearrange its currency basket, as well as its investment of reserves in the light of international developments that have occurred as a result of Britain's exit from the European Union.
The central bank demanded to follow the exact developments gold prices, as well as deposit growth rates to put them in mind when the next meeting to set interest rates Ensuring continued funding Adzalmoisnh of local resources is absolutely necessary and as a priority in light of what is going through the global economy of the developments was expected to worsen during the period next.
He said the central bank should be looking is now granting an export facility for any active companies with Britain and Britain hit by the exit of the UnionThe EU would have on this exit will take Britain such as imposing taxes or customs economic measures were not imposed by and influenced theseCompetitive companies and thus on financial positions led her to stumble in the payment of its obligations like what was done with the tourism sector.
He went on, "the central bank research grants facilities for any British companies operating in Egypt and damaged exit from the British and led this vulnerability to stumble withEgyptian banks and this is a good message for Arab and foreign investors, as it should be on all Egyptian banks provided loans and credit facilities reviewSectors active an export to Britain and follow them carefully during the coming period.
He is also on Egyptian banks must review all loans and credit facilities provided by British companies operating in Egypt, and follow them carefully during the coming period.
For his part, Mohsen Adil, deputy chairman of the Egyptian Association for the Study of finance and investment, that Egypt is linked to many preferential agreements with the EU, so it should speed up the study the implications of the British separation, and speed up the hearing urgent negotiations held with the British side on the British car factories in Egypt, and exports Egypt, which was the intervention of Britain, according to trade agreements, with the contract for preferential agreements for investment with Britain
He called just central to reconsider its assortment portfolio of foreign exchange reserves to Egypt and the promise of foreign currencies, especially in light of the current developments with the approach of annexation of the Chinese yuan to the basket of major currencies in the International Monetary Fund.
He called Vice President of the Egyptian Society for the Study of finance and investment need to change important figures in the general budget for the year 2017/2016 on her head, a barrel of oil, which was prepared on the basis of $ 40 and also the dollar against the pound is estimated with 9 pounds, stressing the need to increase these figures.
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