Farouk El-Okdah To Leave CBE Upon Approval Of New Constitution

A number of bankers affirmed that Dr. Farouk El-Okdah, Governor of Central Bank of Egypt (CBE), will leave his position because the new constitution states that a senior government official cannot take more than two terms in office and El-Okdah occupied this post for three consecutive terms.

Alaa Samaha, former head of Blom Bank Egypt, said El-Okdah will leave his position upon approval of the new constitution. The initial results showed that 64% voted for the constitution which stipulates that “the President of the Republic shall appoint the heads of independent bodies and regulatory agencies upon the approval of the Shura Council, for a period of four years, renewable once. They shall not be dismissed except with the consent of a majority of the members of the Council; the same prohibitions apply to them that apply to ministers”.

Changing the leaders continuously will be in the interest of any institution, he noted. There are many high cadres who can hold such position following El-Okdah, he added.

Samaha noted that El-Okdah’s earlier resignation was because of the drop in foreign cash reserves and the increase in local and international government debts.

The banking expert Bassant Fahmy stated that El-Okdah’s resignation from CBE will post a positive impact. It is not a resignation; it is rather a result of the new constitution which states that the governor of CBE shall not hold such position for more than two terms, she added.