Egypt wants shipping agencies to deal in pounds amid dollar flight
After Egypt’s currency devaluation in March, the Egyptian government hopes to ease the strain on its banking system by mandating that international shipping agencies accept Egyptian pounds instead of US dollars as payment.
CAIRO — As a way to relieve the strain on Egypt’s banking system, following the devaluation of the currency in March, the Egyptian government plans to mandate shipping agencies operating in the country’s ports to accept Egyptian pounds instead of US dollars as payment.
The Federation of Egyptian Chambers of Commerce (FEDCOC) in Egypt has urged Finance Minister Mohamed Maait to compel shipping companies to accept terminal handling fees in Egyptian pounds rather than US dollars, for all containers entering Egyptian ports.
In an urgent request sent to the ministry April 10, the authority indicated that this move is meant to reduce the burden and demand for foreign currencies since companies resort to banks for funds to pay for these agencies.
The minister, in turn, assigned the General Authority for Investment and Free Zones (GAFI) to study the request, telling Al-Masry Al-Youm that requiring importers to pay terminal handling fees in US dollars is “unacceptable, as long as shipping agencies provide services on Egyptian soil.”
