Egypt's foreign exchange gap closing, no intention of significantly devaluing exchange rate: CBE top official

Sarah Al-Issawy, Saturday 13 Aug 2022

The foreign exchange gap in Egypt is closing, as the dollar gap decreased from $3.9 billion last February to $400 million in July thanks to the decisions of the Central Bank of Egypt (CBE) to regulate imports, said First Deputy Governor of the CBE Gamal Negm.

Central Bank of Egypt


In exclusive remarks to Al-Ahram, Negm stressed that there is no cause for concern with regard to the repayment of foreign debt installments.

It is not likely that the CBE will make a significant reduction in the exchange rates in the next stage, he added.

He pointed out that the CBE is working to protect citizens’ deposits, whose value in the banking sector has reached EGP 9 trillion, through the application of strict rules.

Negm explained that deposits grew under Governor Tarek Amer thanks to his 19 years experience in leading the reform of the banking sector, helping banks to regain solvency.

Moreover, he pointed out that Amer also played a major role in setting the rules of international governance by restructuring all banks, including the CBE, for which he contributed to its development to raise its performance to international levels.

Negm stressed that in recent years the CBE has succeeded in building a strong foreign exchange reserve that contributed to increasing confidence in the Egyptian economy.

He explained that President Abdel-Fattah El-Sisi appointed Amer governor of the CBE in 2015, renewing him for a second term in November 2019, which is set to last through November 2023.

The monthly report issued in July by the CBE stated that the total loan balances provided to clients of banks other than the CBE rose in April by about EGP 70 billion to reach EGP 3,418 trillion, compared to EGP 3,348 trillion in the previous month.

According to the report, the volume of loans granted to the government amounted to EGP 1.286 trillion, including EGP 872.07 billion in local currency, and EGP 414.6 billion in foreign currency, while the total non-governmental loans rose to EGP 2,131 trillion, including EGP 1,865 trillion in local currency.

The report stated that the agriculture sector acquired loans worth EGP 480.73 billion, the industrial sector acquired about EGP 472,023 billion, the commercial sector acquired EGP 215.5 billion and the services sector acquired EGP 468.6 billion.

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