World has confidence in Egypt’s economy, Inflation fell to less than 10%.: CBE Governor

CAIRO – 14 April 2019: “The world trusts the capabilities of Egypt’s economy, following the success of the economic reform program which exceeded expectations,”.said Governor of the Central Bank of Egypt Tarek Amer, pointing out that the inflation rate fell to less than 10 percent.

This came during his interview with Egypt Today at the headquarters of the International Monetary Fund in Washington, DC.

The CBE governor said that Egypt is adopting liberal policies in light of the country’s aim to boost economic growth via depending on various funding sources and not only the domestic savings.

The unemployment rate has reached 13 percent, Amer said, adding that the budget deficit, in only two years, declined to LE 6 billion from LE 20 billion. He noted that about LE 160 billion have been allocated for investments by the Finance Ministry.

Amer also said on Friday that foreign cash flows from different sources have recorded $130 billion since the Egyptian pound exchange rate liberation in November 2016, stressing that this is an important indicator that reflects the improvement of the Egyptian economic situation. The amount includes dollar bonds, loans, treasury bills and stock market flows.

As for economic policies, Amer said that it is important to support sources of foreign currency by increasing Egyptian exports abroad and job opportunities at home, enhancing the competitiveness of Egyptian products, raising the rate of domestic production and maximizing tourism resources.

The tourism sector is an essential element in achieving monetary and price stability in Egypt, he said, asserting that the strategic objective of Egypt is to increase the growth rate of tourism sector to reach $20 billion annually, which means the sector will grow by 10 and 15 percent annually.

The oil sector is one of the important sectors supported by the Central Bank of Egypt and banks during the past years, whether in Egyptian pound or foreign currency. The foreign partners’ fees have been paid in petroleum. We also need to support foreign direct investment to boost the balance of payments.

As for the new banking law, he said that it provides rules and foundations to assist in development, enhance the role of banks in development, support employment opportunities and maintain internal stability.

In attempt to increase support for the SME sector in the coming period, Amer said that Egypt is taking steps in the SME sector.

“To support small and medium-sized enterprises and innovation, the Central Bank has been working on the development of several initiatives including financial coverage, banking technology, mobile and internet banking, electronic footprint, small enterprise support through tax incentives and an independent integrated system to support small and medium enterprises 2019. The Central Bank of Egypt also supports the SME sector through low interest rates.” he said.