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Head of the Importers Division praises the Central Decision: Provides goods in the markets


Imad Kenawy, head of the Importers Division at the Cairo Chamber of Commerce, praised the Central Bank’s decision to raise the limit for exempting shipments from documentary credits to $500,000 instead of $5,000.

Kenawy said that the Central Bank’s decision will contribute to solving a major problem, foremost of which is the release of the goods piled up in the ports. Availability and competition between merchants and factories will contribute to controlling prices and reaching reasonable levels.

The head of the Importers Division also praised the Central Bank’s decision to liberalize the exchange rate to be fair and adopt market mechanisms, considering that the biggest beneficiary of this decision is Egyptian exports.

Kenawy demanded the continuation of this decision so that the liberation would continue without interruption, that is, that the price of the dollar in banks be fair with its availability every day to eliminate the black market, and not support the dollar because the biggest loser from supporting the local currency is the state’s general budget.

The Central Bank had decided this morning, Thursday, to raise the maximum limit for shipments exempted from the rules for working with documentary credits, to 500 thousand dollars instead of 5 thousand dollars, and also decided to liberalize the exchange rate of the Egyptian pound against foreign currencies.

Imad Qinawy said that the liberalization of the exchange rate and raising the interest has positive and negative effects, explaining that the liberalization of the exchange rate in order to have a positive effect must be complete and extended at all times and accompanied by a permanent availability of the dollar, while the liberalization of the exchange rate and its non-availability encourages the parallel market to raise Random because it is known that those who work in dollars on the black market are not economics, but in many cases they are uneducated, and their goal is quick profit, and creating prices according to the volume of demand, and therefore the lack of currency means creating a suitable environment for speculation.

He explained that the availability of currency, whatever its price, in the bank paralyzes the parallel market and consequent losses, because it is known that the outcome of the work of the black market is from the transfers of Egyptians abroad, which is the price of alienation from his country and he is looking for a fair price for his transfers, and he is not to blame for that.

He pointed out that it also has a positive impact on the export proceeds, and in the event that the exporter needs to obtain the proceeds in Egyptian pounds, it is also at a fair price, and the most important thing is that the state budget does not bear the currency support differences for all kinds of goods and services, whether basic, luxury or luxury without distinction, as well as the effort and cost It is misplaced and has no effect on the final consumer prices because in fact the cost of the currency is calculated at the parallel market price, and the costs of goods, products and services are calculated at the actual currency price (the price of obtaining the currency) and not a book (the bank rate with the lack of currency).

He explained that raising the interest rate aims to reduce the effects of inflation and reduce the volume of circulation of the pound, if it has this only positive effect and it is appreciated and respected, but it has negative effects that must be resolved, the first of which will lead to a weakening of the purchasing power at a time when we call for support for industry, investment and production, and that is linked By activating the demand, we find that the visions are conflicting. As for the other negative impact of the interest rate hike on lending, it also goes against the direction of supporting industry and investment as well, and therefore it must be issued with the decision to raise the interest rate, emphasizing the financing initiatives that reduce industry and production.

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