Imports slump 27% in December after currency flotation: CAPMAS

CAIRO – 6 April 2017: Egypt’s total imports dropped 26.7 percent to $4.4 billion in December, a month after authorities’ decision to free-float the Egyptian pound in November, the Central Agency for Public Mobilization and Statistic (CAPMAS) announced Thursday.

Meanwhile, exports stabilized at $2 billion, the same volume as December 2015, CAPMAS said via its official Twitter account.

Egypt’s trade deficit slipped to $2.4 billion in December, marking a roughly 40 percent decrease from the figure recorded in the same month a year earlier, CAPMAS added.

As part of its efforts to overcome a sharp foreign currency shortage, the government imposed some restrictions on unnecessary imports. Many traders reduced the volume of their imports due to declining demand from consumers because of price spikes following the pound’s flotation.

Egypt is looking forward to achieving a significant rise in its exports to utilize increased competitiveness after the local currency’s flotation.