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Brexit is huge event with economic impact: Shoukry - Daily News Egypt

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Brexit is huge event with economic impact: Shoukry

EGX dropped by 5.5% on Sunday, closing at 6,851.6 points after Brexit

Egypt’s Minister of Foreign Affairs Sameh Shoukry said that Brexit is a huge event that will lead to several reactions on an economic level, during an iftar with Egyptian newspaper editors.

Shoukry pointed out that at the beginning of such occurrences, all international stock markets drop, especially in developing countries.

“Brexit may change the course within the EU, especially in terms of dealing with Arabs and the Middle East. [The EU] may now lean towards the Euro-Mediterranean countries,” he added.

Shoukry explained that the rising right wing inside the EU is a result of recent terror attacks, reassuring that there are also other groups and parties that oppose the right wing.

The British pound’s value reached a 30-year low after the announcement of the referendum results.

Brexit impacted the Egyptian Exchange’s (EGX) performance on Sunday, with stocks dropping by 5.54%, closing at 6,851.6 points.

As a result, the EGX lost any profits achieved throughout 2016, and its performance turned from a positive to a negative, registering losses of 2.2% since the beginning of 2016.

International stock markets lost around $ 2tr in the last two days.

In his first appearance after the voting, chancellor of the exchequer George Osborne said that “no one should doubt our resolve to maintain fiscal stability”.

British prime minister David Cameron resigned shortly after the announcement of the referendum results, giving the United Kingdom three months to choose a new leader. This will also delay the exit process.


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