18 Questions
What is the primary purpose of accumulating foreign exchange reserves in Egypt?
To support the currency during periods of volatility
Which of the following is a strategy to mitigate the impact of currency fluctuations?
Diversifying trade relationships
What is the benefit of promoting exports in managing currency fluctuations?
Earning foreign currency and reducing reliance on imports
What is the goal of import substitution in managing currency fluctuations?
Reducing dependence on imported goods by promoting domestic production
What is the advantage of export-oriented industries in a depreciating currency environment?
They become more competitive
What is the primary objective of trade diversification in managing currency fluctuations?
Providing a more balanced exposure to different currencies
What is the likely impact of a depreciating currency on companies that heavily rely on imports?
Higher costs, leading to lower profits and decreased stock prices
What can a weaker currency lead to in terms of trade balances?
An increase in exports and a decrease in imports
What was the percentage increase in Egypt's merchandise exports in 2022 compared to 2021?
22.4%
What can be attributed to the rise in Egypt's import value in the first half of 2023 compared to the same period in 2022?
A weakening EGP, making imports more expensive
What was the percentage increase in tourist arrivals in Egypt in 2022 compared to 2021?
55.3%
What can companies that export goods or services benefit from when a currency depreciates?
Increased demand, leading to increased revenues and profits
What could be a contributing factor to the decline in net foreign direct investment inflows in Egypt?
Increased uncertainty caused by currency fluctuations
What is one way the Central Bank of Egypt can intervene in the foreign exchange market?
By buying or selling Egyptian pounds
What is a potential social impact of a devalued EGP?
More expensive essential goods for low-income households
What is a strategy for managing currency fluctuations in Egypt?
Central Bank intervention
What is a possible reason for the growth of tourism in Egypt?
Relaxed travel restrictions
What is a challenge caused by currency fluctuations in Egypt?
Uncertainty for businesses and individuals
Learn about Egypt's foreign exchange reserves, how they are built and managed, and their role in stabilizing the currency during periods of volatility. Discover the importance of trade diversification in reducing dependence on specific countries or regions.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
