The Ministry of Finance reduced the customs dollar exchange rates for non-essentials goods to EGP 17.24 in May, down from EGP 17.385 April, while keeping its price unchanged at EGP 16 for strategic commodities, the ministry announced on Wednesday.
In December 2018, Egypt announced ending the discounted customs exchange rate for some imported goods, which are considered non-essential.
Since January 2017, Egypt has set a monthly fixed customs exchange rate, following the flotation of the local currency in November 2016.
Consequently, the customs rate for all goods was set at EGP 16 to the USD; however, the exchange rates in the currency market were different, as Egypt’s pound held steady in a narrow range of EGP 17.78 to EGP 17.98 to the USD, over the last six months.
However, the US dollar began a downward trend at the end of January 2019 and continued this decline throughout February, March, and April, losing more than 75 piasters against the pound.
The average official price of the US dollar at the Central Bank of Egypt (CBE) reached on Tuesday April 30 EGP 17.12 for buying and EGP 17.22 for selling.
Following the ministry’s decision in December 2018, two customs exchange rates were set, one for the strategic and essential goods, which will remain at EGP 16, while the other rate is for the non-essential goods and will be set as the average exchange rate, listed by the CBE in the preceding month.