THE MINISTRY of Finance is studying a proposal that would oblige shipping agents to settle payments at Egyptian ports in Egyptian pounds rather than in US dollars as is currently the case in some instances, Nahla Abul-Ezz reports.

Finance Minister Mohamed Maait said the proposal presented by the Federation of Egyptian Chambers of Commerce was meant to oblige entities operating within Egypt to make payments in the national currency.

He added that the CEO of the General Authority for Investment and Free Zones was studying whether shipping agents can pay their dues to container-handling companies in the Egyptian currency.

Under the proposal submitted by the federation, dealings in foreign currencies will be stopped and the local currency will be used, reducing demand for foreign currency.

Amr Al-Samdouni, secretary of the Transport and Logistics Division at the federation, lauded the proposal, saying that shipping lines are still often collecting fees for their services in dollars at a time when Egypt is suffering from a shortage of the greenback due to the decline in foreign-currency earners like exports, tourism, and foreign investment.

He added that shipping agents collect agency fees for services such as cargo handling in dollars on the pretext that they are dealing with foreign companies. He noted that local companies pay in the local currency and that foreign companies should be treated equally.

He stressed that some importers are having a hard time procuring dollars to pay for their cargos. Paying fees for unloading containers, security, and fines in dollars increases the burden on importers and raises the prices of imported commodities, he added.

Limiting the use of the dollar to only when necessary will help the pound appreciate against the dollar in the long run, said economics professor Alia Al-Mahdi. However, she stressed that the proposal, if implemented, should not be applied to Suez Canal tariffs as they represent a main source of hard currency for Egypt.

* A version of this article appears in print in the 14 April, 2022 edition of Al-Ahram Weekly.