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Customs Dollar downs again to EGP 15.75

Source: Daily News. Minister of Finance Amr El-Garhy said that the customs dollar rate will be down to EGP 15.75 starting Wednesday, currently at EGP 16.

He said the new price will be effective from 1 March to 15 March.

The customs dollar rate is the rate that determines the amount paid by importers in local currency for customs. Egypt had reduced the customs dollar rate earlier this month to EGP 16, down from EGP 18.5 before, amid price hikes that led to stagnation in business.

Cutting down the customs dollar rate is likely to reduce prices on the market, especially as banks are providing dollars at EGP 15-16 as well.

Secretary general of the Federation of Egyptian Chambers of Commerce  Alaa Ezz said that the decline in customs dollar rate will reflect quickly on the prices of highly costumed products, including cars, electrical appliances, and poultry, adding that other commodities’ prices are also expected to go down in a month or two.

Magdy Abdel Aziz, head of the Egyptian Customs Authority, has previously announced that the authority would be calculating the customs rates in foreign currencies on a bi-monthly basis starting March. The customs dollar rate used to remain fixed by the Central Bank of Egypt (CBE), but the flotation made that approach problematic, requiring a different mechanism.

Meanwhile, importers have, since the flotation, been calling for keeping the customs rate unchanged, in order to facilitate the process of properly calculating import values and customs posed on them.

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