Gov't reveals significant increase in banks' foreign exchange collection: Report

CAIRO - 23 September 2023: A government report revealed a number of positive indicators monitored by the Central Bank in the exchange market, after enhancing the levels of exchange rate flexibility, the most prominent of which is a significant increase in the banks’ collection of foreign exchange, whether from the local market, or the proceeds of remittances from Egyptians abroad.

 

The report also indicated increase in foreign currency from tourism sector; Foreign investors who entered the Egyptian market again since January 11 and a major surge in trading amounts in the interbank market, as trading amounts since January 11 recorded an increase of more than 20 times compared to the previously recorded daily amounts.

 

The report, which was titled “A Package of Reform Measures to Encourage the Private Sector,” said that these positive indicators came after the government implemented several measures to control the exchange rate policy, including liberalizing the exchange rate in the months of October 2022 and January 2023, issuing a decision to rationalize dollar spending.

 

Among the steps was the decision by the National Bank of Egypt and the Bank of Egypt to offer new savings certificates to Egyptians and foreigners in dollars for a period of 3 years with an annual return rate of 7% and 9%.

 

The report explained the most important decisions taken to enhance the levels of flexibility of the exchange rate policy during the period from October 2022 to January 2023, so that the exchange rate reflects the value of the Egyptian pound against foreign currencies by the forces of supply and demand within the framework of a flexible exchange rate system, while giving priority to the primary goal of the Central Bank of achieving price stability.

 

The report pointed out the importance of rationalizing dollar spending, through the issuance of Prime Minister’s Decision No. 69 of 2023, with the aim of rationalizing public spending in the entities included in the state’s general budget and public economic bodies until the end of the fiscal year 2022/2023.