File Photo: Arrivals to Egypt bring 600 kg of duty-free gold in 3 months. AP
In TV remarks on Sunday, Nagy Farag, advisor to the supply minister for gold industry affairs, said the entry of these large quantities of gold has had a positive impact on the Egyptian gold industry and stabilized gold prices amid the national dollar shortage.
The six-month-long decree, which went into effect on 10 May, is set to expire in November. Farag, however, said he hopes that the exemptions will be extended.
Over the past month, gold prices have been stable at EGP 2,150-2,160 for 21-carat gold, Farag said, noting that the influx of gold has given hope to small jewelry workshops and prevented price surges.
Egyptians and non-Egyptians are eligible for the gold customs duty exemption, added the gold industry advisor.
Farag noted that gold prices can still increase due to the ongoing Russia-Ukraine war and its impacts on energy and gold prices globally.
The gold market in Egypt has seen major disruptions due to the current global economic crisis and a shortage in US dollars coupled with ballooning demand.
The exemption, which applies to semi-manufactured gold, gold prepared for currency trade, and jewelry parts made or coated with a layer of precious metals, aims to foster stability in gold prices locally and reduce the smuggling of semi-manufactured and manufactured gold.