Division of importers submit a study to the Minister of Industry for "holding the Dollar's rising""

Newspaper Title: Ahram Online

Newspaper Number:

Saturday - 20 April 2013




the General  Division of importers at General Federation of Egyptian Chambers of Commerce Prepared


important study for holding the dollar rising and Uncontrolled prices Through" local currency payment


agreement" between Egypt and various countries of the world provided that the Central Bank of Egypt is


taking over with other central banks In countries that are concluded trade agreements with them.



Mohamed Rostom, secretary general, who prepared this study, and submitted to


Dr. Hatem Saleh - Minister of Trade and Industry, said that for example the volume of trade


exchange with Turkey 5 billion dollars of imports in return for $2 BILLION Egyptian exports and this


means that there is a deficit balance of trade between them 3 billion dollars.



If Egyptian businessman agreed on a deal for supplying raw cotton to Turkey costs 10 million Egyptian


pounds. The central bank is evaluating the deal in the dollar's exchange rate on export  day of the deal


and  the Turkish Central Bank also evaluate inTurkish lira exchange rate against the US dollar, and here


the payment by the source in the two countries and imported in local currency.



He pointed out that if there is a deficit, the State – debtor can pay deficit through exchanging in kind for


the benefit of the State's superior trade exchange or settling through Premiums on a monthly, quarterly


or annually.



He explained that this system save the importers'' hard effort  in getting foreign currency either the dollar


or the euro from the black markets, exchange companies, or even through banks. Thus would ease


the burden entirely on these foreign currencies, which their prices would decrease to less than 3 pounds


for dollar in the foreign exchange market. It would be reflected positively on the prices of imported goods,


and raw materials imported by factories.



He stressed that China applies the local currency payment agreement with 18 countries in various


countries of the world. This system was introduced to President Mohamed Morsi during his visit to


China, and he was accompanied by Dr. Al okda, former Central Bank Governor and there is no comment


on this system when china offered to apply it with Egypt.