Egypt Adopts Long-Term Expansionary Monetary Policy

The Egyptian Ministry of International Cooperation stated that the Central bank of Egypt (CBE) targets to adopt long-term expansionary monetary policy.

As part of the strategic framework of Egypt’s economic and social development plans to 2022 being discussed by the community, the expansionary monetary policy will inject the large volume of deposits held by the banking sector to the market which will in turn boost economic and developmental growth.

“The national plan for doubling income in the next 10 years to 2022” aims at reducing interest rates on loans offered to productive projects which have high operating costs, controlling inflation rates and developing micro-funding schemes to benefit both lenders and borrowers.

The Egyptian pound has maintained stability against US dollar and British pound and improved against euro. Egypt’s international cash reserves ranged between US$ 15-15.5 billion during the period from February to October 2012.

The national plan stresses the importance of implementing a new tax system encouraging investments and contributing to creating job opportunities, through offering rational tax incentives linked to the project’s performance and its ability to create new jobs.