Egypt’s C.Bank pumps dollar liquidity to release piled up imports

The Central bank of Egypt pumps dollar liquidity continuously in the market to release accumulated imports and it gives priority to commodities and production components to ensure that the production process does not come to a standstill, cabinet report.

The government issued a report responding to 17 claims and rumors circulating about the economy, including on the FX rate, the country’s external debt, and the anticipated IMF loan

 The report added that a working group has been formed between the Central Bank of Egypt and the Ministry of Finance to secure the nation’s FX needs until the end of FY 2022-2023 and to formulate different scenarios on how to bridge the dollar gap in the budget, in addition to issuing a set of directives for a number of ministries with the aim of rationalizing dollar spending.

The government is working on a plan to secure the nation’s FX needs until the end of FY 2022-2023, as well as a medium-term plan for the following two years, Madbouly said.

Madbouly didn’t provide details on what the plan entails. Some of the steps the government is taking to secure FX shouldn’t be made public ahead of time to avoid negative repercussions, he said.

Prime Minister Moustafa Madbouly held another presser on the economy yesterday, according to a cabinet statement, as the government looks to reassure the market on FX rates, the state of imports, and the rising cost of living. Madbouly ran through the raft of measures the government has taken to address global economic headwinds, from moves to boost foreign inflows and sell state-owned assets to the private sector, to an EGP 130 bn package of tax cuts and social spending meant to alleviate the burden of rising costs domestically.