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Recent Decisions by the Governor of

Recent Decisions by the Governor of the Central Bank of Egypt
On 4 February 2013, the Governor of the Central Bank (“CBE”) circulated two decisions in regards to the import of fundamental products. One gave priority to transactions importing specific products in available foreign currency, and the other was meant to increase transactions relating to the import of a few commodities exempted from the cash margin that is in place until the end of June 2013, which was made by the governor of CBE in the circular issued on the 6 November 2012. The transactions given priority in foreign currency are transactions importing the following:
  1. Basic food and supply commodities;
  2. Production machines, equipment, and spare parts;
  3. Intermediate goods;
  4. Medicines, vaccinations and related chemicals;
  5. Fertilizers and pesticides;
  6. Industrial oils.
The second decision added to the exempted transactions which included poultry and meats, sugar, and five other commodities:
  1. Medicines, vaccinations and related chemicals;
  2. Children’s milk;
  3. Food, including wheat, oil, and seeds;
  4. Animal feed, including corn and soya);
  5. Fertilizers and pesticides.
Conclusion
These two decisions are new step by the Central Bank of Egypt towards the organisation and the management of foreign currency in light of the difficult economic situation in which Egypt finds itself. However, political certainty and stability are the most important features for determining the future of the country.      
On 4 February 2013, the Governor of the Central Bank (“CBE”) circulated two decisions in regards to the import of fundamental products. One gave priority to transactions importing specific products in available foreign currency, and the other was meant to increase transactions relating to the import of a few commodities exempted from the cash margin that is in place until the end of June 2013, which was made by the governor of CBE in the circular issued on the 6 November 2012. The transactions given priority in foreign currency are transactions importing the following:
  1. Basic food and supply commodities;
  2. Production machines, equipment, and spare parts;
  3. Intermediate goods;
  4. Medicines, vaccinations and related chemicals;
  5. Fertilizers and pesticides;
  6. Industrial oils.
The second decision added to the exempted transactions which included poultry and meats, sugar, and five other commodities:
  1. Medicines, vaccinations and related chemicals;
  2. Children’s milk;
  3. Food, including wheat, oil, and seeds;
  4. Animal feed, including corn and soya);
  5. Fertilizers and pesticides.
Conclusion
These two decisions are new step by the Central Bank of Egypt towards the organisation and the management of foreign currency in light of the difficult economic situation in which Egypt finds itself. However, political certainty and stability are the most important features for determining the future of the country.