Business Today - Dec 2022 - Jan 2023 issue
In our first issue of 2023, BT looks at the year’s upcoming economic challenges, possible implications of the CBE’s withdrawal of the letters of credit system, boosting exports, and Jazeera Paint’s aim to revolutionize Egypt’s paint industry
In our first issue of 2023, BT looks at the year’s upcoming economic challenges, possible implications of the CBE’s withdrawal of the letters of credit system, boosting exports, and Jazeera Paint’s aim to revolutionize Egypt’s paint industry
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News in Focus
until the end of June 2023.
Madbouli explained that the goal during
the next few weeks is to get out of “this crisis,”
adding: “We reassure manufacturers and suppliers
of all sectors of the country in order to
complete the large movement of goods exit
and ensure that the industry returns to its full
capacity.”
Madbouli had said earlier that the priority
in releasing goods from the ports would be for
food commodities, food manufacturing components,
medicines, production requirements
and factories.
Goods’ Release Paves the Way for a New Depreciation
of the Exchange Rate
Head of the International Monetary Fund’s
mission to Egypt Vladkova Hollar told Reuters
that the Central Bank had not intervened in
the exchange rate by injecting reserves into the
foreign exchange market since Egypt and that
the IMF had reached an expert-level agreement
in October. “But the late imports are not
released.”
“After the release of the goods, we expect to
see a daily change in the exchange rate similar
to the changes we see in exchange systems that
witness real currency price liberalization,” Hollar
stated.
She added that the demand for the dollar
may decrease due to the decline of the pound.
After announcing that an agreement had
been reached at the expert level regarding
the extended fund facility in October, Egypt
allowed a significant decline in the Egyptian
pound’s exchange rate from EGP 19.7/$ to
EGP 24.7/$.
Egypt had reached an agreement with the
IMF at the expert level in October, allowing
the country to obtain an extended credit facility
worth $3 billion, which was approved in December
by the Board of Directors of the fund.
The agreement program, which extends for
four years, also allows Egypt to obtain additional
financing of $1 billion through the IMF’s
newly established “Resilience and Sustainability
Fund” and an additional external financing
package amounting to about $5 billion from
several international and regional financing
institutions.
www.BusinessTodayEgypt.com January 2023
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