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The Official Gazette published the decision of the Governor of the Central Bank، No. 2200 of 2020 on the maximum holding of Egyptian banknotes، For those who come or travel from Egypt.
And the text of the decision، However, “those who come or travel from the country can carry Egyptian bills of up to 5,000 pounds.”
The Monetary Policy Committee of the Central Bank of Egypt decided, at its last meeting, to reduce the overnight deposit and loan rate and the rate of the central bank’s main operation by 50 basis points to reach 8.75%, 9 , 75% and 9.25%, respectively, and the credit rate was also reduced. The discount, in 50 basis points, up to 9.25%.
The overall annual urban inflation rate fell to 3.4% in August 2020 compared to 4.2% in July 2020, which is the second lowest rate on record, after October 2019, in almost 14 years. The fall in inflation continued, sustained by the containment of inflationary pressures, which is due to the decrease in the annual contribution of food products to a greater extent than the increase in the annual contribution of non-food products.
This was driven by the drop in fresh vegetable prices, as opposed to their seasonal pattern for the second month in a row. As a result, the monthly urban inflation rate continued to reflect falling food commodity prices and rising non-food commodity prices for the fourth consecutive month. In light of this, the annual core inflation rate rose to 0.8% in August 2020 compared to 0.7% in July 2020.
Preliminary data showed that the real growth rate of gross domestic product reached 3.5% during the 2019/2020 fiscal year, compared to 5.6% during the first half of the same year. The unemployment rate registered 9.6% during the second quarter of 2020 compared to 7.7% during the first quarter of the same year.
These developments came about as a result of the negative impact of the Corona pandemic’s spread on the real economy. The data indicate the stability of some initial indicators during the months of July and August 2020 after the notable improvement registered in the month of June 2020.
Globally, economic activity remains weak despite some recovery. Global oil prices have generally stabilized and global financial conditions continued to improve despite the prevailing uncertainty.
In light of the above, and as a result of containing inflationary pressures and all internal and global developments, the Monetary Policy Committee decided to reduce the central bank’s basic interest rates by 50 basis points. This decision is consistent with the achievement of price stability in the medium term. Lowering the base rates of return at the committee meeting also provides adequate support for economic activity at the present time.
The committee will closely monitor economic developments and will not hesitate to adjust its policy to maintain monetary stability.
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