CBE's foreign reserve intact

"Measures recently taken by the government are adequate to stabilize the foreign exchange market and there is no need at present for more measures, "Prime Minister Dr. Atef Ebeid said yesterday following his visit to the Commercial International Bank (CIB).

Ebeid added that the government would discuss other financial and monetary policies to boost the Egyptian economy.

The policies relate to interest rates, liquidity and the conditions likely to help the banking sector enhance the flow of foreign currency into the country.

He also stressed President Mubarak's interest in improving economic conditions.

Ebeid noted that the purpose of his daily visits to Egyptian banks and his meetings with their officials, together with the Minister of Economy and Foreign Trade, was to ensure that the new system was being applied properly, as well as for getting a daily market update.

Talking to reporters, Dr. Ebeid said that the meeting of the ministerial economic committee that he chaired earlier in the day had reviewed a report by the Central Bank of Egypt (CBE) on the state of the exchange market.

The report stated that there was a remarkable rise in foreign currency deals on the market, leading to more confidence among dealers.

It added that the flow of dollars into the market via banks on Wednesday, the fourth day of the application of the new mechanism, hit $ 64 million, a rise of US $ 20 million over Tuesday. Total figures hit $ 173 million inflows in 4 days.

"Daily follow-ups will continue until the market settles down," Ebeid said, noting that the deficit during the first few days of the new regime will be covered by theCBE.

In this connection, CBE Governor Ismail Hassan said that banks supplied their customers of their needs of foreign currencies.