Cabinet responds to 21 quries raised by exporters on foreign currencies

Egypt's cabinet has replied to 21 enquiries regarding ministerial decree 139/2003, stating that exporters have to sell up to 75 per cent of their foreign currency revenues to the banks.

Minister of Foreign Trade, Youssef Boutros Ghali, said that the responses to banks or exporters were aimed at avoiding any confusion resulting from incorrect interpretations of the decree.

Director of the Ministry's Foreign Trade Sector, Al-Sayed Abul-Komsan said that the many enquiries received had been collated into 21, which covered most aspects of the decree.

The answers were provided to avoid any confusion and contribute to the success of the free foreign exchange policy, he added.

One response stipulates that the decree does not apply to export deals conducted prior to 1 January, 2003, even if the revenues were received after the decree was issued on March 24.

Meanwhile, exporters who sell revenues to the banks can sign an agreement with the export development bank of Egypt, an affiliate of the ministry, according to which banks will meet their foreign currency needs for the importation of production supplies if they need them at a later date.

The total foreign currency amount to be provided to exporters will equal the amount to be provided to exporters will equal the amount they have paid into the banks during the previous six months.