Egypt could apply flexible exchange rate by end of 2023: MP

Ahram Online , Monday 10 Jul 2023

The Central Bank of Egypt is considering implementating a flexible exchange rate policy by the end of 2023, Fakhry El-Fiqi, Head of the Planning and Budget Committee at the House of Representatives said.

Fakhry El-Fiki, Head of the Planning Committee addressing the parliament. Facebook.
Fakhry El-Fiki, Head of the Planning Committee addressing the parliament. Facebook.Fakhry El-Fiki, Head of the Planning Committee addressing the parliament. Facebook.

 

The government should negotiate a six-month waiver of the flexible exchange rate mandate with the IMF, El-Fiqi suggested to ON TV's Kalima Akhira talk show on Sunday night.

Egypt is under a four-year obligation with the IMF for a $3 billion loan. However, the deal is currently facing challenges, as the first review, originally scheduled for 15 March, has not yet made progress.

New investment legislation
 

The government is also set to implement a new law that will eliminate tax exemptions for state entities, leading to an expected revenue of EGP 80 billion ($2.6 billion) over the next five years, El-Fiqi announced. 

This legislation, which consists of new amendments to the Investment Law, was approved by the Cabinet on 21 June and is currently under discussion in the Parliament.

El-Fiqi specified that the law will be applied to 59 economic authorities, including the Suez Canal, and 23 subsidiaries of the army's National Service Projects Organization. However, "military entities not engaged in civilian investment activities, such as the Armed Forces Engineering Authority, will be exempt from the new law," he said.

The move is aimed at promoting fairness between the private and public sectors, expanding licensing rights to new industries in free zones, and attracting foreign direct investment.

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