ADIB Egypt Allocates Half of Total Budget to Government Securities Investments
Tamer Shaheen Sheds Light on Strategic Financial Movements
From the Reader Wall newsroom, we can confirm that the Abu Dhabi Islamic Bank-Egypt (ADIB Egypt) is dedicating a significant portion between 40% to 50% of its overarching budget to venture into governmental securities investments. Principally, ADIB Egypt outlines a preference for short-term investments predominantly influenced by the speculated future interest rates, states Tamer Shaheen who serves as the Head of Treasury and Financial Markets at ADIB Egypt.
Interests Rates, Exchange Rates: A Closer Examination
Shaheen further elaborated on the rationale behind the prevalent treasury bonds interest rates, which currently exceed 30%. Besides, he also touched on the valuation of the Egyptian pound, arguing that a balanced price would possibly fluctuate around 35 to 40 against $1 when considered based purely on technical computations.
Considering the Socioeconomic Impact
Despite the financial and technical aspects considered, Shaheen emphasized the significance of assessing the societal reverberations while determining the equitable exchange rate. The role of economic activities in affecting the living standards of the society at large cannot be underplayed, thereby making the social impact of such financial decisions an indispensable consideration.
Crucial Points Discussed by Shaheen:
- ADIB Egypt allocates approximately 40% to 50% of its overall budget to invest in government securities.
- The bank has shown a preference for short-term investment options due to anticipated interest rates.
- He unraveled the reasoning behind the current high interests rates on treasury bonds, which are exceeding 30%.
- Shaheen proposed a theoretical exchange rate for the Egyptian pound against the Dollar, in a range of approximately 35 to 40.
- Beyond financial and technical aspects, he underscored the importance of considering social impact when deciding the suitable exchange rate.
