Withdraw money from banks … poisoned and malicious invitations

The Central Bank of Egypt is a guarantor of depositors’ funds (The New Arab)

Over the past few days, toxic and malicious calls have spread on social media social It calls on Egyptians to withdraw their money from banks, claiming that it exposes them to risks serious.

Most of the invitations are anonymous or from people who have no experience in managing money, investments and cash, and some were based on Fears And sometimes allegations, false data and exaggerated indicators, among the allegations made by those who ask to withdraw money from banks:

The Egyptian government can take control of savings, similar to what has happened in other countries, most recently Lebanon.

The government is experiencing a cash flow crisis. Amid fears raised by some economists about the possibility of Egypt entering a new financial crisis, which could lead to the bankruptcy of some banks.

The liquidity crisis has hit the banking sector in light of the government’s expansion of loans at banks in abundance to finance large projects, and the banks have stopped lending to some of them through the interbank mechanism.

The government fears that depositors will withdraw their money in the event of global economic turmoil, which will negatively affect the Egyptian economy, after the US Federal Reserve and other major central banks raised interest rates to counter the increase in inflation risks.

These calls have increased following the report issued by the international credit rating agency Fitch, which warned of an impending liquidity crisis in the banking sector due to the shortage of foreign currency and the increase in Egypt’s current account deficit, and acceptance by the Central Bank of a mechanism to grant emergency liquidity to banks suffering from a liquidity shortage, and an official call for Egyptians to deposit funds in banks instead of real estate.

What is striking is that these toxic and malicious calls that spread from time to time are not based on a sound economic and financial foundation, but rather on fears that are exaggerated.

Therefore, its purpose may not be to educate depositors and fear for savings, but rather to provoke panic among the masses of Egyptians, and create a kind of confusion within the most sensitive economic sectors in the country.

This can force savers to withdraw their money from the banks and put it under the hood, thus exposing the owners of the money to various risks, including theft, loss, erosion and inflation. Maybe some were pushing to smuggle their money abroad, as was the case in previous years.

It is also interesting that the voice of these calls, which was joined by some economists opposed to the ruling government, quickly reached thousands of savers who feared wasting their lives, especially in light of the difficult life crisis that the citizen experienced. and the government’s feverish expansion in bank lending, raising debt rates year-on-year to unprecedented levels. As well as external borrowing greed.

About 10 Egyptian banks were subject to bankruptcy and faltering, and their fate was to disappear and merge over the past thirty years, and yet the depositor of his money in those banks did not lose

But these calls ignored several facts on the ground, for example that the Central Bank of Egypt guarantees depositors’ money, and therefore any bank was exposed to risks, whether a liquidity crisis or a failure to collect its money, the Central Bank guarantees its customers’ deposits in full, unlike what happens in other countries, and this guarantee extends to all banks operating in Egypt, whether domestic, Arab or foreign, and they have been in place for many years.

Historically, there have been about 10 Egyptian banks that went bankrupt and stumbled and were doomed to disappear and merge over the past thirty years. Despite this, a depositor did not lose a single pound of his money in those banks.

Take for example Al-Ahram, Nile, Credit and Trade “Misr” banks, Misr Exterior, United Egyptian Bank, Dakahlia Commercial, International Islamic Bank for Investment and Development, Engineer and others.

Banks have all stumbled due to corruption, mismanagement and looting of their money by parliamentarians, businessmen and bankers, and despite the bankruptcy of these banks and the closing of their doors By decision of the Central Bank and its merger with other banking units and their disappearance forever, the Central Bank guaranteed the full payment of the depositors’ money in spite of its evaporation as a result of the great bad and dubious debt of those banks, which exceeded two billion pounds in one of the banks, equivalent to $ 580 million at the prices of that time.

The banking sector belongs to all Egyptians and not to the government and the governing authority, and it manages savings of more than £ 6 trillion, of which £ 3.6 trillion is owned by the family sector.

And the most important customer of these banks is the depositor, not the lender, and therefore any upheaval in the sector will have direct and dangerous consequences on the citizen, the savings of society and the national economy.

The banking sector belongs to the Egyptians, not to the government and the governing authority, and it manages savings of more than £ 6 billion, including £ 3.6 trillion for the family sector.

The citizen may lose his savings, as happened in Lebanon, or get a small portion of it in installments over years, as happened in other towns, and the government employee will not receive his monthly salary if the banks make a financial failure in the does not face. , because the banks are the first financier of the public treasury, and from their money are paid Salaries of employees in the administrative apparatus of the state.

If the banking sector falters, the government will not get enough money to finance the import of medicines, food, petrol, diesel, fuel, spare parts, production requirements, intermediate goods and others.

Businessmen will not get enough money to finance their investment and production projects that will provide millions of Egyptians with jobs.

Simply put, any country’s economy collapses and collapses rapidly as the banking sector falters in the lungs of any economy, and Lebanon’s experience is far from the Egyptians’.

The banking sector is a very sensitive sector, and political rivalry should not extend to this sector, which should not be tampered with, because to approach it is a red line and playing with fire can devour everyone within a few days, and in the foreground is the citizen himself.

Governments are leaving their positions, even if the time is long, and therefore they are not affected by the failure of the banking sector, unlike the saver, who may be the first and perhaps the last victim of any crisis facing the banks stare.

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