The volume of Egypt’s exports declined by 40 per cent during the first half of this year as a result of the constraints faced by local factories, a senior official says.
The Chairman of Egypt’s Chamber of Food Industries in the Federation of Egyptian Industries (FEI), Mohamed Shoukry, says: “The most prominent constraint faced by the local factories is the Egyptian central bank’s decision to impose a cap on the amount of dollars that can be deposited in banks.”
Shoukry adds: “Limiting dollar deposits in banks to $10,000 a day, or a total of $50,000 a month, made it difficult to open letters of credit to provide production supplies from the outside,” reports UAE-based Aliqtisadi.
He says: “Manufacturers met with Prime Minister Ibrahim Mahlab to discuss the crisis with him and he promised to take urgent action to save the industry, but no actions have been taken to resolve the crisis so far.”
It is worth mentioning that the Chamber of Industries made several proposals to resolve the crisis of exports to African markets, which are vital and wide markets for Egyptian exports, by holding tradeshows and the provision of the dollar in order to provide production supplies.
($1 = AED3.67, at the time of publishing)