CBE’s Measures to Correct Egypt’s Economic Path: Finance Minister

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Egypt’s Minister of Finance, Mohamed Maait, affirmed the necessity of recent measures by the Central Bank, including interest rate hikes and exchange rate liberalization, to steer Egypt’s economy. He stressed the coordination between fiscal and monetary policies to control and reduce inflation rates effectively.

Speaking at a meeting organized by the American Chamber of Commerce in Egypt, Maait disclosed the completion of the tax strategy project for 2024-2030. He assured that the strategy will undergo discussions with the business community before submission to the government and parliament. Maait pledged not to increase corporate taxes in the future and expressed willingness to lower them if feasible.Regarding recent exchange rate adjustments, Maait clarified that they signify a shift to a flexible exchange rate system based on supply and demand dynamics.

Additionally, Maait announced the establishment of a committee comprising ministers, economic representatives, and auditors to monitor public investment spending, ensuring it remains below one trillion Egyptian pounds. He underscored the importance of reducing investments in national projects and ongoing discussions to settle dues of foreign companies in the oil and gas sector.

Maait outlined forthcoming measures to enhance the investment climate, empower the private sector in driving the economy, and involve them in development projects, particularly infrastructure and citizen services. He assured that no price hikes are anticipated during this period.