FILE - Traditional grocery shop in Egypt
CAIRO – 30 October 2022: Chairman of the Consumer Protection Agency Ayman Hossam El Din underlined in a phone-in Saturday that the penalty of price manipulation and monopolistic practices can reach up to LE2 million.
The official explained that such violations are detected by inspecting groceries and supermarkets to know if the products displayed have been in stock for a while or have been recently supplied, and hence, learn if the prices have been correctly adjusted.
Hossam El Din's statements are made amid an expected rise in prices due to the devaluation of the Egyptian pound on Thursday down from almost LE20 per one US dollar to around LE23.
The agency's chairman pointed out that the spike in prices that occurred before the devaluation was due to the difficulty in securing the production inputs of goods. That is because they are mostly imported, and there has been a shortage in foreign currencies. He added that prices should return to its rational levels within a short period of time.
The Central Bank of Egypt announced moving to a durably flexible exchange rate regime, leaving the forces of supply and demand to determine the value of the Egyptian pound against other foreign currencies. “This will take place while prioritizing the primary goal of achieving price stability, and building up sustainable, adequate levels of Foreign Exchange Reserves,” according to the CBE's Monetary Policy Committee (MPC).
Moreover, the CBE will begin the process of gradually repealing the use of Letters of Credit for import finance, to be fully canceled in December 2022.
It elaborated that this procedure will serve as a catalyst for the rejuvenation of economic activity in the medium term.
According to the MPC, Egypt witnessed large capital outflows and rising commodity prices.
The decisions also included working towards building the foundation for a derivatives market to further deepen the foreign exchange market and enhance its liquidity.
Be Social
Comments
Leave a Comment