Egypt releases $3B worth of accumulated goods in ports

CAIRO - 13 March 2024: Egypt has recently released a portion of accumulated goods across various ports totaling $3 billion, Prime Minister, Mostafa Madbouly, stated during a cabinet meeting to complete the course of economic reform in coordination between the government and the Central Bank of Egypt (CBE).

Madbouly highlighted that this phase is characterized by numerous positive indicators, with a notable focus on the gradual restoration of remittances from Egyptians residing abroad to their regular levels.

This positive trend is attributed to the declining presence of the parallel market, where no price disparity exists between its rates and the official exchange rates.

Furthermore, banks and exchange offices have observed an increased influx of individuals seeking to exchange dollars for Egyptian pounds, indicating a growing demand and confidence in the local currency.

The prime minister also shared insights from Ahmed Issa, the Minister of Tourism and Antiquities, who reported that tourism companies have been actively transferring dollars into the banking system and exchanging them for the Egyptian pound.

Madbouly pointed to the positive reports about the Egyptian economy that were issued in recent days.

Recently, Moody's Ratings (Moody's) upgraded its outlook on Egypt from “negative” to “positive” while affirming the Caa1 long-term foreign and local currency issuer ratings.

In a comprehensive report, Moody's explained that the shift in Egypt's outlook is a reflection of noteworthy official and bilateral support, coupled with significant policy measures recently implemented by the government. These actions, if continued, are expected to contribute to the macroeconomic rebalancing of the country.