International Business Management
ISSN: OnlineISSN: Print 1993-5250
Abstract
The purpose of this paper is to examine the issues and challenges surrounding the question of capital account liberalization and financial sector in Egypt. Capital account liberalization can bring major benefits to a country. However, experience has shown that capital account liberalization is not without its problems and challenges. Therefore, countries should be prepared to deal with the challenges that liberalization will throw up. We propose to explore these questions by examining the specific experience of Egypt and present a detailed explanation that is related to the topic of capital account liberalization. Capital account liberalization requires a liberalized developed domestic financial sector. A developed financial sector should be able to provide a range of products to protect consumers of these products from risks arising from the increased volatility of interest rates (or exchange rates). As developed financial sector can also help policy‐ making in a liberalized environment. Thus, before capital account liberalization, government should embark on liberalizing domestic markets; necessary conditions (stable macroeconomic environment) that need to be satisfied in order to ensure the success along the optimal path to capital account liberalization.
How to cite this article:
Hwaida Maher Zekry. Capital Account Liberalization and Financial Sector in Egypt.
DOI: https://doi.org/10.36478/10.59218/makibm.2023.1.13
URL: https://www.makhillpublications.co/view-article/1993-5250/10.59218/makibm.2023.1.13