Balance Of Payment And Exchange Rate In Egypt Economics Essay

labyrinthine sense Of Payment And Exchange Rate In Egypt Economics EssayIs a verdant mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Thereby, Egypt is a transcontinental country, and is considered to be a major power in North Africa, Mediterranean Region, African continent, Nile Basin, Islamic World and the Red Sea. Covering an atomic number 18a of about 1,010,000squ ar kilometers (390,000sqmi), Egypt is bordered by the Mediterranean Sea to the north, the Gaza despoil and Israel to the northeast, the Red Sea to the east, Sudan to the south and Libya to the west.Egypt is famous for its ancient civilization and some of the worlds most famous monuments, including the Giza pyramid complex and its Great Sphinx. The southern city of Luxor contains some(prenominal) an(prenominal) ancient artifacts, such as the Karnack Temple and the Valley of the Kings. Egypt is widely regarded as an important political and cultural nation of the Middle East.P art 1Balance of payment and Exchange Rate in EgyptBalance of payments transactions are usually tabulated under two broad categories, current account and capital account. certain account includes visible (merchandise) trade as well as invisible items, such as tourism, shipping, and profits and other moneys earned overseas.Here is the results of studying an yearbook report for balance of payment and exchange rate in Egypt The YearBalance of Payment (BOP)Exchange RateThe Comment20055.5 million1$ = exchange price1$ =5.77 Egyptian poundbuying price1$=5.23 Egyptian poundThats mean that the export rate will be greater than the import rate. So, the income of Egypt in this year is in good situation and it was the best situation in the last 5 years20062.7 billion1$ = change price1$ =4.34 Egyptian poundPurchasing price1$=5.99 Egyptian poundThats mean that the export rate less than the import rate. So, the income of Egypt in this year is decrease and it was the worst situation in the last 5 years.20073.1 billion1$ = Selling price1$ =4.76 Egyptian poundPurchasing price1$= 5.00 Egyptian poundThats mean that the export rate more than than the import rate. So, the income of Egypt in this year is start increase again20084.1 billion1$ = Selling price1$ =5.3 Egyptian poundPurchasing price1$= 4.33 Egyptian poundThats mean that the export rate more than the import rate. So, the income of Egypt in this year is still increasing20095.38 billionSelling price1$ =5.5 Egyptian poundPurchasing price1$=5.23 Egyptian poundThats mean that the export rate will be greater than the import rate. So, the income of Egypt in this year is increasedPart 2Economic right in EgyptIn The Political Economy of Reform in Egypt Understanding the Role of Institutions, Carnegie Middle East Centers Sufyan Alissa finds that economic emend, considered a priority by the Egyptian government, has not been fully potent for three reasons it lacks public support, Egypt has failed to foster a competitive busine ss environment, and the lack of dynamic and transparent institutions.Alissa argues that Egypt lacks the institutional capacity to experience better-coordinated reform programs that terminal figureinus its socioeconomic realities, including widespread poverty and unemployment, high inflation, and a soaring public debt. Reform is needed to improve the efficiency of Egypts bureaucracy, increase the right and transparency of politicians, and widen political participation for Egyptian citizens.Key FindingsEgypt has failed to create a healthy and competitive environment for business development. Despite the passage of many laws to organize the business environment, the government has not developed an effective enforcement process for these new laws, and little progress has been made in the fight against corruption.Economic reform lacks popular support in Egypt as reforms are perceived to cause more harm than good as previous reforms have consistently failed to address socioeconomic pr oblems. Furthermore, future reforms are predicted to increase the gap between the Egyptian rich and poor before the masses can feel the positive effects.The majority of the private sector and civil society is excluded from the debate over Egypts economic reform strategy. Public participation is crucial for advancing civil society institutions and promoting an effective role in designing and implementing comprehensive economic reform.Given the nature of the Egyptian state and the main actors in the market and civil society, developing the necessary institutions and, most important, making them function properly within a short period of time seems unrealistic. Hence, Egypt should make the choice Either start developing these institutions currently or lag behind. Building these institutions is the responsibility not only of the Egyptian state but also of the private sector and civil society, contends Alissa.Part 3Monetary Policy in EgyptEgypts Monetary Policy ObjectiveLaw No. 88 of 2003 of the Central cant, Banking Sector and Monetary System entrusts the Central Bank of Egypt (CBE) with the formulation and implementation of monetary policy, with price stability being the primary and overriding objective. The CBE is committed to achieving, over the medium term, low rates of inflation which it believes are essential for maintaining confidence and for sustaining high rates of investment and economic growth. The Governments commitment to fiscal discipline is important to achieve this objective. monetary Policy in EgyptFiscal policy is the use of Egyptian government spending and taxation to influence the parsimoniousness. When Egyptian government decides on the goods and services it purchases, the transfer payments it distributes, or the taxes it collects, it is engaging in fiscal policy. The primary Egyptian economic impact of any change in the government budget is felt by particular groups-a tax let down for families with children, for example, raises their di sposable income. Discussions of fiscal policy, however, generally focus on the effect of changes in the government budget on the overall economy. Although changes in taxes or spending that are revenue neutral may be construed as fiscal policy-and may affect the aggregate level of output by changing the incentives that firms or individuals face-the term fiscal policy is usually used to describe the effect on the aggregate economy of the overall levels of spending and taxation, and more particularly, the gap between them. findingEgyptian economy is one of the most attractive economies in the world that is because it faced mane ups and downs, also the large number of population in Egypt affects the economy in a very observing way. Thats why the economics ministry in Egypt must take care for its behavior.