Exports- Creative Commons cia Pixabay
CAIRO - 6 March 2024: The Cabinet, in its meeting on Wednesday, approved the launch of the seventh phase of the immediate cash payment initiative to settle export burdens, with a value of LE 8 billion.
This phase aims to settle the overdue obligations of export burdens for exporting companies, covering export files at the Export Development Fund until those loaded until June 30, 2023, that are fulfilled by the end of September 2023, with an amount not exceeding LE 8 billion.
At the beginning of the Cabinet session, Mostafa Madbouly praised the important decisions taken by the Central Bank earlier in the day.
In a significant development, Egypt devalued its currency on Wednesday, resulting in the Egyptian pound's value decreasing to over 50 per dollar by midday, in contrast to the maintained rate of approximately 30.9 over the past year.
The CBE also raised interest rates by 600 basis points (6 percent), reaching 27.25 percent.
He noted that these decisions are part of the ongoing efforts to transition to a flexible framework targeting inflation, allowing the exchange rate to be determined according to market mechanisms.
The Prime Minister added that these steps aim to unify the exchange rate, a crucial measure that contributes to eliminating the accumulation of demand for foreign currency, following the closure of the gap between the official market exchange rate and the parallel rate.
He emphasized that eliminating the parallel market is expected to help restrain inflation.
The Prime Minister stressed the continued coordination between the government and the Central Bank in the coming days to closely monitor the markets and understand the impact of these decisions.
He affirmed that the government continues its policies of rationalizing government spending during this period to overcome the economic challenges it faces.
"Our goal in this stage is to work and coordinate with the Central Bank to reduce inflation rates, regulate debt, and transition it to a downward path. We will continue the structural reform program, focusing on driving the industrial, agricultural, and communication sectors. Supportive policies will continue to increase the private sector's contribution to the Egyptian economy,” Madbouly continued.
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