Egypt central bank sees import rules saving $20B in 2016

Egypt’s central bank Governor Tarek Amer said rules to curb what he described as unnecessary imports may save about $20 billion this year, helping to ease a foreign-exchange squeeze threatening the nation’s economic recovery. “The largest demand for foreign exchange comes from imports, so these measures are a quick fix to improve the balance of payments,” Amer said in an interview with Bloomberg News in his Cairo office Tuesday, his first with an international news organization since he assumed the position in November. “Egypt has been flooded with cheap, low-quality goods and we are trying to regulate this market.”

Authorities have tightened rules to finance the imports of goods deemed non-essential and have asked importers to register their foreign suppliers with the government. Egypt imported $61 billion worth of goods in the fiscal year that ended June 30, according to official data, almost three times the value of its exports.

Amer took charge amid a national debate on currency policy, with investors criticizing his predecessor over measures that included restrictions on dollar cash deposits at banks to crack down on black market trading. Policymakers have since taken steps to bolster confidence in the local currency as they attempt to counter speculation of an imminent devaluation.