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Finance Ministry raises USD value at customs to EGP 17 starting Thursday - Daily News Egypt

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Finance Ministry raises USD value at customs to EGP 17 starting Thursday

Importers will have to re-price their products according to the new value, prices may increase, says Alaa Ezz

Minister of Finance Amr El-Garhy said that the US dollar value at customs will increase to EGP 17, starting from Thursday and continuing for two weeks, up from EGP 15.75 now.

The customs dollar rate determines the amount paid by importers in local currency for customs.

According to El Garhy, the new price will be kept at EGP 17 until the end of March.

The US dollar value is calculated based on the average exchange rate in the two weeks before setting the new price.

Egypt had reduced the price in the middle of February to EGP 16, down from EGP 18.5 earlier in the same month, amid price hikes in all commodities and services.

Inflation recorded unprecedented rates, reaching 33% at the end of February, on the back of floating the pound, fuel price surges, and the application of the value-added tax.

The secretary general of the Federation of Egyptian Chambers of Commerce (FEDCOC), Alaa Ezz, said that the main reason behind increasing the USD price at customs is the depreciation of the Egyptian pound’s value against the US dollar, where the exchange rate reached EGP 18 at the Central Bank of Egypt.

He added that the increase in the rate will lead prices of commodities with high customs up, including cars and electronics, as well as poultry.

Ezz noted that the surge is likely to drive importers and manufacturers to re-price their products to avoid losing money.

Egypt heavily relies on imports to secure its needs of food and fuel. The size of imports amounted to $60bn at the end of the last fiscal year, against exports of $18bn.

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