Egypt liberalises customs dollar exchange rate as of Sept. 1

Egypt on Sunday decided to liberalise the customs dollar for imported commodities, which will set according to the dollar price at the country’s central bank as of September 1.

“As of Sept. 1, the customs duties on imports of all kinds will be estimated according to the foreign currencies exchange rates announced by the central bank”, the finance ministry said in a statement on Sunday.

The cancellation of the customs exchange rate is due to “the disappearance of the exceptional circumstances” that led the government to apply it, the ministry added.

“Now, the foreign currencies exchange rates announced by the central banks have stabilized, and have converged with the customs dollar rate.”

The ministry introduced a monthly customs exchange rate in January 2017 following the flotation of the pound currency in November 2016 as part of an IMF-backed economic reform programme. It had set the customs exchange rate at 16 pounds to the dollar for essential items and at a fluctuating rate adjusted monthly for non-essential goods.

In July, Egypt had kept the customs dollar price at 16 Egyptian pounds for $1 for essential and strategic imported commodities, and 16.68 pounds for non-essential ones.

Source: Ahram Online and Reuters