Currency Support and Quality Importation Initiatives in Egypt

Analysis

Rather than accept calls for devaluing the Egyptian Pound, the Central Bank of Egypt (“CBE”) and the Egyptian Government seem to have a different strategy to address pressure on the Egyptian Pound derived substantially from massive importation.

The strategy adopted by Egypt appears to be a combination of qualitative and quantitative control approaches as embedded in the following measures fostered by the Government and the CBE

Quality & Officially Branded Products Only

The Ministry of Trade & Industry has issued Resolution No. 992 of 2015 on 31 December 2015 as published in the official Gazette (the ”Resolution”). The Resolution attempts to improve the regulations in respect of the importation of certain products including some food products, dairy products and electrical equipment as well as certain accessories and other products outlined in the annex attached to the Resolution (the “Regulated Products”).

The Resolution establishes a register for all manufacturers of the Regulated Products. Registration will be pursuant to a decision of the Minister of Trade & Industry who will have discretion to exempt certain manufacturers from part, or all of, the requirements of registration.