President Abdel Fattah El Sisi apparently supports amendments to the Central Bank and Banking Acts, CBE Governor Tarek Amer told Al Shorouk in an interview on the sidelines of the IMF and World Bank Fall Meetings. Amer said the act would enhance the CBE’s role as a regulator of the sector to safeguard depositors. He also said the act, which would set term limits for managing directors, tweak the CBE’s representation on bank boards, and force banks to kick in 5% of their bottom lines annually for an industry development fund, would also make the sector more competitive.

Amer then went on to defend prevailing interest rates, saying that they had played a major role in the increase in foreign inflows, particularly into the debt market. He added that despite the rate hikes this year, returns from direct foreign investments far exceeded returns on Egypt’s treasuries, with foreign companies raking in as much as 60% in returns. He stated that Egypt managed to draw in around USD 80 bn since “the economy pivoted on the correct trajectory,” adding that USD 18 bn came from investments in treasuries, USD 18 bn in investments in equities, USD 35 bn came from Egyptian depositors, and USD 7 bn from the last round of eurobond issuances.

Amer also said that he was unconcerned about Egypt’s foreign debt obligations, which amount to USD 12.9 bn for the upcoming year, especially as the UAE and Saudi Arabia will let their deposits at the CBE rest until after the original 2018 date for their return. China has also approved renewing a USD 2.7 bn currency swap agreement. Amer assured that while foreign debt does appear to be high, it was necessary spur economic growth. He added that the CBE was ready to repay a USD 3.7 bn African Export-Import Bank loan this December.

While in Washington, Amer was named Central Bank Governor of the Year for the MiddleEast and North Africa by GlobalMarkets in a special issue for the IMF and World Bank Fall Meetings.