Egypt ban on gold trade for unregistered operators provides security: Experts

Asmaa Mustafa,Monday 30 Oct 2023

Egypt's Ministry of Supply and Internal Trade issued on Sunday a new resolution prohibiting engaging in exporting, importing, or trade of precious metals, including gold, without a permit from the Assay and Weights Administration (AWA).

Jewellery store in Egypt. Ahram Gate.
Jewellery store in Egypt. Ahram Gate.

 

The new decision aims to regulate transactions in the Egyptian market, reduce fraud, and protect the rights of the state and merchants, according to the Gold Division at the Cairo Chamber of Commerce.

Members of the division praised the decision, as it achieved a significant shift in regulating the trade movement in gold and golden jewelry in internal markets.

“The new decision helps add more discipline to the Egyptian gold market,” Nagy Farag, advisor to the supply minister for gold industry affairs, spoke to Ahram Online.

This move will enhance credibility, guarantee customers' rights, and ensure that they will not be victims of fraud, Farag added.

"The decision aims to provide safety in the market, but it won't have any impact on gold prices," he noted.

The division is committed to giving priority to protecting markets from any tampering with consumer rights and regulating internal trade, said Hani Milad, head of the division.

Last week, the Central Bank of Egypt (CBE) revised the deadline for transferring the export proceeds of gold artefacts to banks from 7 days to 30 days, to ease export rules.

The country's gold production amounts to about 15.8 tons per year, most of which comes from the Sukari mine in the Eastern Desert.

In 2022, Egypt's gold exports increased by 45 percent to reach $1.633 billion, up from $1.126 billion in 2021, according to Egypt's General Organization for Export and Import Control.

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