Currency devaluation not to affect Egypt’s imports: minister

The devaluation of the Egyptian pound will not increase the prices of the country’s imports, which are estimated at $81 billion by the end of 2014, Minister of Finance Hany Qadry Dimian told Daily News Egypt Monday.

Egypt’s dollar sources are likely to increase during the upcoming period from foreign investments and tourism, Dimian said.

He added that the new dollar income will absorb the anticipated increase in Egypt’s imports led by the pound devaluation.

Furthermore, Dimian said the government will work to provide new incentives to encourage foreigners to invest in Egyptian treasury bonds and bills. He, however, did not explain what those incentives may be, noting that they are still under consideration.

On the latest updates on value-added taxes, the minister said 90 percent of the dialogue between the government and civil organisations is finalised. He added that the tax will be discussed further in an upcoming cabinet meeting.

The minister refused to disclose the percentage of the tax, arguing that it is the last step in the process. Dimian said the tax will be announced before the year ends.

Elsewhere, the Ministry of Finance’s decision to put up bonds in international markets is still under review, and the ministry has not withdrawn its decision but is waiting for the right opportunity, said Dimian.

He added that Egypt seeks to create positive revenue on its bonds, since it has already put up bonds worth $1.5 billion and is considering launching another set of $1.5 billion bonds in international markets in the coming period.