The general federation of chambers of commerce’s importers division chairman, engineer Matti Bishai, stated that although the current increase in the exchange rate in banking transactions may result in higher prices, it would not have a substantial impact on food items.
Bashi claimed in a press release issued today that many commodities saw significant price increases in recent months due to expectations of a high exchange rate, and that as a result, many commercial sectors will not experience further price increases as a result of these increases actually occurring.
Regarding the decision of the previous central bank to cancel the work of documentary credits up to $500,000 instead of $5,000, it will result in a significant breakthrough in the exit of the goods stacked in the ports, leading to a boom in goods and a void of the missing goods or that witnessed a deficit during the previous period.
The instructions issued on February 13, 2022 allowing the use of documentary credits in import financing will be gradually repealed by the Central Bank of Egypt, with the full repeal taking place in December 2022.
Bashi noted that the decision to work with documentary credits for goods more than $5,000 has led to the accumulation of goods with ports since last March, and that the markets will witness the popularity of the next few days because most import operations are below the 500,000 and Lar, and as a result, the importers will not need a documentary adoption for them. This will speed up their exit and circulation in the markets, and consequently the trade.
Bashi emphasised the need for strict government regulation to prevent people from abusing it to raise prices under the guise of the dollar’s rise, even though many commercial sectors had already increased their prices in anticipation of the change in the exchange rate, so there is no justification for further increases.
Division of Importers: There is no reason for price rises given that they have been accompanied by increases in the exchange rate.
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